Premier Giuseppe Conte said Friday that so far his government has not drafted a plan on how to bring in a promised flat tax amid reports it could be financed by allowing Italy's budget deficit to increase. "I'm not going to discuss how to do the flat tax with journalists," Conte told reporters. "A project for the flat tax has not yet arrived at the premier's office". Boosted by his League party's victory in last week's European elections, Deputy Premier and Interior Minister Matteo Salvini is pressing hard for the government to move quickly on bringing on his 'flat tax' reform.
This week the League presented a proposal for a flat tax for families with earnings of up to 50,000 euros a year, which Salvini said would give the economy a "positive fiscal shock".
Sources in the other partner in the coalition government, the 5-Star Movement (M5S), said Friday they were in favour of using the deficit to finance a flat tax, with a 15% income-tax regime for earnings up to 65,000o euros.
The M5S sources said that Economy Minister Giovanni Tria was in agreement too.
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