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Renzi presents 'historic' 10-bn-euro tax-cut package

10 million Italians will have 80 euros a month more in wages

12 March, 19:06
Renzi presents 'historic' 10-bn-euro tax-cut package (ANSA) - Rome, March 12 - Premier Matteo Renzi presented 10 billion euros in income tax cuts on Wednesday, saying it was a move of a "historic dimension". He said the cuts would take effect from May and would benefit "10 million Italians" who will have 80 euros a month more net in their pay packets on average.

The cuts will be focused on low-earners, giving 1,000 euros a year more net to people who earn less that 1,500 euros a month. He added the cuts would not be covered by increases in other taxes. "The financing of this 10 billion euros is totally carried out by the government on the basis of spending cuts, with general macroeconomic figures that I'll show you without tax increases," Renzi told a press conferences after the tax cuts were approved at a cabinet meeting along with labour-market reforms and schools and housing measures. He added that the tax cuts would boost the Italian economic, which emerged from its longest postwar recession last year, but the recovery is "It's obvious that putting 1,000 euros (per year) into people's pockets helps make people more likely to spend," Renzi said.

"But it's also a measure of attention and equity that is the fruit of a political system that gives a good example. It's an operation that I'd say is of historical dimension".