Italian consumers say VAT hike would be 'crazy'
Last increase in value-added tax cost Italians 5.8 billion euros20 September, 18:00
That is how much the rise in the top band of VAT to 21% from the previous 20% in the VAT cost Italian people between September 2011 and May of this year, said consumer associations ADUSBEF and Federconsumatori.
They say it would be "crazy" to implement another hike in the tax, with the top band of VAT set to rise to 22% next month unless the government can find the money to avert the rise.
They associations said raising the tax further, even if done gradually, would knock as much as 10% off consumer spending and it therefore would actually reduce government revenues rather than increasing them.