Scrapping IMU wrong says OECD chief
Should cut taxes on wages, investments, Gurria tells ANSA01 October, 14:49
"We have always been against the abolition of IMU," he said.
The abolition of the unpopular IMU was Berlusconi's banner pledge when he stormed back from low in the polls to second place in February's inconclusive general election. The shaky left-right government cobbled together after a two-month post-election stalemate and now on the brink of collapse, agreed to replace it with a so-called service tax from next year despite concerns it would leave a big budget shortfall.
This gap has now been partly plugged by a 1% rise in VAT.
Berlusconi, who pulled his ministers out of the government on Saturday, wants Enrico Letta's executive to continue for a week to repeal the VAT hike, make sure IMU is abolished for good, and pass the 2014 budget.
Letta, whose party wanted to lift IMU from all but the best-off but not scrap it completely, has called a confidence vote Wednesday to see if the government can go on.
There is rising speculation Berlusconi's party could split because of the hard-line stance prompted by his refusal to bow to a Senate ouster following a tax-fraud conviction.