Not only concessions but the next budget law includes increases for various taxes.
The next budget law 2024 proposes a mix of financial support and tax increases. On the one hand, initiatives aimed at supporting families, workers and businesses; on the other, a series of tax increases emerge that according to estimates could weigh for 1 billion euros.
The tax relief measures are mainly focused on less wealthy families, workers and small businesses. However, more discreetly, the budget law also includes a series of tax increases that will weigh on citizens' pockets.
Among the planned interventions, first and foremost that on the traditional and electronic cigarette sector, with increases expected of around 10 cents per pack by 2025. VAT will also increase for feminine hygiene products, diapers and baby food, going from a rate of 5 to 10%. Increases will also be seen in the real estate sector, with the flat-rate tax on short-term rentals that will reach 21% from the 26st, starting from the second apartment. Also under discussion are interventions on Ivie and Ivafe, with an increase in the tax on real estate and financial activities abroad being studied.
The issue of taxation does not even spare the sector horse racing bets, recovering in the last period thanks to the push given by the main online platforms. In fact, under discussion is the increase in the rates for the concessionaires, a decision that according to the main players in the sector, would have repercussions on the entire supply chain, affecting the end customer. Lower odds for horse racing would translate into less convenience for the players, who could decide to channel their entertainment towards other more profitable disciplines.
The Ministry of Economy and Finance has confirmed most of the measures. The government aims to raise around €1 billion following the ratification of these increases. However, the cuts made will be temporary, as is the case with the tax wedge, which could lead to new financial obligations for citizens starting in 2025.
In conclusion, the Budget Law offers several support initiatives, but questions arise about how much Italians will actually be able to benefit from them, considering the tax increases expected to start in January 2024. However, there remains the possibility of amendments that mitigate the impacts of the fiscal measures, especially for those deemed excessively onerous.
Article published on November 21, 2023 - 09:21
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