Rome

Bank of Italy says country's tax burden is 'growth obstacle'

At 44% tax take is higher than in other EU countries

Bank of Italy says country's tax burden is 'growth obstacle'

Rome, April 23 - A top official from Italy's central bank on Tuesday said the country's tax burden was too high. In testimony before the Senate, Daniele Franco, head of the Bank of Italy's economic research division, said that the country's overall tax burden at 44% of GDP is "very high", both historically and when compared to other countries. The tax burden in Italy is some three points higher than in other EU countries, Franco said, "and the high level of tax evasion means the burden on honest citizens is even heavier'' and acts as an "obstacle to growth". Franco also said that further measures will be needed to keep the country's budget balanced in the coming years. "To keep the budget in balance also from 2015 on it will be necessary to introduce new measures, even if of a more limited nature than in the past," Franco said in his testimony. If governments were to keep a structural balance by refinancing all budgeted expenditures, the size of needed corrective measures would be equivalent to 0.2% of GDP per year over the three year period 2015-2017, or roughly 16-17 billion euros, Franco said. However the Bank of Italy official warned that if the country wants its budget "also recognized at the European level" then it must come clean about what it intends to do regarding the share of taxes collected through current real-estate taxes. While it was not mentioned by name, the reference was to the much-hated IMU tax put in place by the previous, technocrat government of Mario Monti, which raised the taxes Italians pay on their primary residence.

Lascia il tuo commento

Condividi le tue opinioni su Gazzetta del Sud online

Caratteri rimanenti: 400

Le altre notizie

i più letti di oggi

Natalina tornava dal lavoro

Natalina tornava dal lavoro

di Salvatore De Maria