The 2020 budget may stop tax
breaks for high earners, sources said as the government was
finalising the package Monday.
There may be, they said "an initial remodulation of tax
expenditures, with tax breaks being reduced, down to zero,
starting with earners above 11-120,000 euros a year".
This would affect "only 1-2% of tax payers," the sources
said.
The intervention, they said, would be "soft, very selective
and not retroactive".
The new rules on tax breaks would apply starting with 2020
expenditures, the source said.
That means their effects would be seen in income tax returns
for 2021.
The government is putting the finishing touches to the 2020
budget amid some disagreement among government partners.
A revised and updated version of the government's DEF
economic and financial blueprint must be sent to the European
Commission by Tuesday night.
The government is mainly composed of the anti-establishment
5-Star Movement (M5S) and the centre-left Democratic Party (PD).
There are also two smaller parties, ex pòremier and former PD
leader Matteo Renzi's Italia Viva (IV9 and the small centre-left
Free and Equal (LeU) party.
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