Here is the government’s work decree: tax-free fringe benefits of up to 3,000 euros for those with children, a cut in the tax wedge of up to 7%

Thirty-eight articles, with measures on the tax wedge, on fringe benefits for workers with children and with the details of the new inclusion allowance, the measure that will replace the basic income. The government’s work decree is ready and the latest drafts have given details on the measures that the Meloni executive launches with a decree on May 1st.

Here are the measurements

The new inclusion check
For the new instrument of the inclusion allowance, the government plans to authorize a total expenditure of over 5.4 billion euros in 2024 and over 5.6 billion euros in 2025 and 2026. it therefore expects expenditure of 384 million this year, while for the Work Activation Tool, which will enter into force on 1 September, expenditure of 276 million is foreseen in 2023 and 2.1 billion in 2024, expenditure which will then decrease in subsequent years.

Support for families
In order to support families and facilitate the reconciliation between private life and work, a fund has been set up with an endowment of 60 million euros for the year 2023. With the article “Setting up a fund for socio-educational activities in favor of minors’ allocates resources for ”socio-educational activities in favor of minors, intended to finance initiatives by the Municipalities, to be implemented also in collaboration with public and private bodies, aimed at strengthening summer camps, territorial socio-educational services and centers with an educational and recreational function that carry out activities in favor of minors”.

The fringe benefits
The government will not tax fringe benefits of up to €3,000 for workers with children. The article ‘Tax measures for corporate welfare’ establishes that ”limited to the 2023 tax period, by way of derogation from the provisions” of the Consolidated Law on Income Taxes, ”the value of goods does not contribute to forming income transferred and services provided to employees with dependent children, as well as the sums paid or reimbursed to them by the employers for the payment of domestic utilities for the integrated water service, electricity and natural gas within the overall limit of Euros 3,000”. The expenditure is estimated at 142 million euros in 2023 and 12 million for 2024.

The wedge cut
The cut in the tax and social security wedge for five months will go up another four points. Article 34 establishes that for the pay periods from 1 July 2023 to 30 November 2023, without further effects on the thirteenth month installment, the extent of the exemption is raised from two points to six percentage points for incomes up to 35 thousand euros and seven points for incomes up to 25,000 euros.

(updating)