Extension of the fifth installment of the ‘fourth’ scrapping and confirmation, also for 2025, of the cut to the tax wedge. While waiting for the data of the end of July on tax revenues that give hope, the government defines two other measures on tax issues after having definitively archived the income tax return and corrected the preventive agreement.
The intentions of the executive, as it has announced several times in recent weeks (and also repeated on the sidelines of the G20 in Brazil) the minister of economy Giancarlo Giorgettiare those of not launching a “blood and tears maneuver” after the summer when the construction of the budget law will start, but neither of resorting to a new deficit. Also because with the new pact EUafter the suspension due to the pandemic, the deficit must return to 3%.
Market stability and public debt
The markets are calm on our country and yet, as the episode in June after the French elections teaches us, all it takes is a little volatility generated elsewhere and the pressure on the spread is making itself felt again on one of the world’s largest debts, ours, which is running towards 3000 billion euros.
Tourism and GDP growth
The government has the good performance of services on its side, especially tourism which is setting new records and the stability of the GDP which according to his estimates should increase by1% this year. The likely rate cut by the ECB in September although the reduction in the coming months will be less rapid than expected.
Reduction of tax pressure
The theme tax and the reduction of the overall burden on families and businesses is therefore central to supporting growth also through consumption which is recovering with the drop in inflation. In our country, the tax burden, as reported in the annual report of the EU Commissiondropped slightly in 2022 (before the government Melons) to the 42.7% of GDP in step with the reduction seen in the EU (at 40.1%).
Tax revenues and economic maneuver
With the self-liquidation at the end of July, we will then know the data on the revenues which, as the undersecretary of the Ministry of Economy and Finance explained Federico Freni in an interview with The print«are recording a trend higher than expected» thus providing additional resources and avoiding additional debt. Also from the corrective decree on tax deadlines and the preventive settlement agreement it is expected to collect other funds to be used for the maneuver. Again Freni in fact announced that in the 2025 maneuver there will be an extension of the cut to the tax wedge with the aim of making the measure stable in the medium term.
Extension of the fifth installment of the fourth scrappage
Meanwhile, the executive, as stated Linen Richnational deputy head of the department of enterprises and productive worlds of Brothers of Italyhas welcomed the indications of the Senate Budget Committee and has extended to September 15, 2024 the payment of the fifth installment of the scrapping-quater. «To maintain the benefits», «it was necessary to make the payment of the fifth installment by July 31, 2024. The payment was considered timely if made by August 5, 2024. With the extension provided by the Corrective Decree, taxpayers will have until September 15, 2024, but, thanks to the 5-day grace period, the payment is considered timely if made by September 20, 2024».