No to exchange more VAT less income tax

No to the increase in VAT, even if in a selective form, in exchange for less Irpef, thanks to the introduction of the flat tax. To say it is the CGIA that expresses its clear opposition to this hypothesis which seems to find the favor of many, especially among the industrialists.

“If VAT were to be increased - declares the coordinator of the Studies Office Paolo Zabeo - we would favor exports, but penalize internal consumption. To pay the bill would be families, but also artisans, small traders and self-employed workers who live almost exclusively on internal demand ”.

The artisans from Mestre recall that, in the worst case scenario, if 23,1 billions of euros are not recovered by the end of this year, the ordinary rate will increase from 22 to 25,2 per cent, while that reduced by 10 will rise to 13 per cent.

The coordinator of the CGIA Studies Office, Paolo Zabeo, continues:

"We absolutely must avoid increasing VAT, even selectively. Nor is barter less Iva plus personal income tax. I remember that from a possible exchange of this kind, most of the 10 million taxpayer taxpayers who fall under the no tax area, which are constituted in particular by retirees at the minimum, would have no advantage. As well as the unemployed and people in serious economic difficulties. By not paying Irpef, they would not benefit from any tax reduction. On the other hand, they would find themselves paying more VAT ”.

Not only. If the increase is not defused, from the 2020 Italy will be the country with the highest ordinary VAT rate in the euro area. From the current 22 per cent, in fact, we will go to the 25,2 per cent. This leap would allow us to climb over all and to position ourselves at the top of the list of the most ill-treated by VAT.

"If it is true that in these 45 years - says the Secretary of the CGIA Renato Mason - we have undergone the most significant rate increase, it is also true that in the 1973 the one applied in Italy was, with the exception of Germany, the most contained. However, if the expected increase will not be avoided, Italian consumers will be subjected to the highest ordinary VAT rate among all euro area countries, with a serious risk that the shadow economy will take on even more worrying dimensions from the 2020. ".

In fact, since its appearance until today, 46 years have passed. The ordinary VAT rate was introduced for the first time in the 1973 and until this year 9 has increased (see Tab. 2). Among the main countries of the euro zone we are the one in which it has grown the most: well 10 points, a record, of course, that no one envies us.

If in the 1973 the tax rate was at 12 per cent, now it stands at 22 per cent, with an increase, as we said above, of well 10 points. Follow Germany, with a variation of + 8 points (it was at 11 now stands at 19 per cent), the Netherlands, with an increase of 5 points (it was at 16 today is at 21 per cent), Austria and Belgium, with increases recorded in the period under review of + 4% and + 3% respectively. France is the only country present in this comparison that has not registered any increase (see Tab. 3). Finally, the CGIA has listed the main goods and services that could be affected by the possible increase in the VAT rate from 10 to 13 per cent.

They are:

  • meats, fish, spices, cocoa, pastry products and biscuits, chocolate, sauces, condiments, soups and minestrone preparations, mineral water, vinegar;
  • firewood in stumps, logs, etc .;
  • electricity for domestic use;
  • methane gas for domestic use (limited to the consumption of the first 480 cubic meters per year);
  • hotel services;
  • building renovations;
  • purchase or construction of non-luxury homes (which is not used as a first home);
  • theatrical performances, circus activities;
  • administration of foods and beverages;
  • plants and flowers.

And those that could possibly rise from the 22 to the 25,2 percent:

  • wine;
  • clothing;
  • footwear;
  • repair of clothing and footwear;
  • domestic appliances;
  • furnishings;
  • furnishing articles;
  • household linen;
  • domestic services;
  • repair of furniture, appliances and linens;
  • detergents;
  • pots, cutlery and crockery;
  • napkins and plates of cards and aluminum containers;
  • laundry and dry cleaners;
  • cars and means of transport;
  • spare parts, oil and lubricants;
  • maintenances and repairs;
  • Games and toys;
  • radios, televisions, hi-fi, video-recorders, etc .;
  • computers, typewriters and calculators;
  • stationery;
  • personal care products;
  • barber, hairdresser, beauty parlors;
  • silverware, jewelery, costume jewelery and watches;
  • bags, suitcases and other personal belongings;
  • free professional fees.

No to exchange more VAT less income tax

| Economics |