EU to examine Italy's cancellation of the IMU property tax
Rehn calls for 'sustainability of public finances' in Italy29 August, 12:07
''It is absolutely essential that Italy ensures the sustainability of public finances,'' Rehn added.
Italian government ministers finalized a deal to overhaul the controversial property tax known as IMU on Wednesday, agreeing to plug the revenue hole with spending cuts and other ''virtuous choices'', Deputy Premier Angelino Alfano said on his Twitter account.
Alfano defined the decree to eliminate IMU as a ''tax-free law''.
''Mission accomplished! Primary residence and farm tax for 2012 have been cancelled. The term IMU will now disappear from the dictionary,'' wrote Alfano.
Premier Enrico Letta said following the afternoon cabinet meeting that ''IMU is cancelled and from January 1, 2014. It will no longer exists as we know it''.
The government has said that IMU will be reformed under the umbrella term ''service tax'', largely controlled by municipalities, that will be introduced in the new year.
(Photo: European Economic and Monetary Affairs Commissioner Olli Rehn)