Tax reform, what is in the enabling law: the decisions of the Council of Ministers

The text of the tax reform in the Council of Ministers

The draft enabling law on tax reform was given the go-ahead by the Council of Ministers, hailed by Prime Minister Meloni as a necessary turning point for the country. The new rules will be operational within 24 months. After discussions in recent days with trade unions and representatives of trade associations and professional orders, the government said it was so ready with a tax reform enabling law which, according to the executive, is based on three key principles: reduction of the tax burden for citizens and businesses, a new relationship between the State and the taxpayer, no longer vexatious but collaborative, and a real fight against tax evasion, said the Prime Minister, Giorgia Meloni, at question time in the Chamber. The oppositions do not like the bill. Lowering taxes for everyone also means lowering them for the rich and make the poor lack services — denounces the secretary of the Democratic Party, Elly Schlein, speaking at the CGIL congress in Rimini -. This reform is very expensive and we don’t understand if they want to do it by cutting healthcare and education again. The M5s leader Giuseppe Conte echoed her: We will take to the streets with the unions, alone and with all the other parties who want to oppose it because the fiscal delegation proposed by the government is a recessive project for the country which favors the better-off.
But what exactly is there in this reform? The heart of the enabling law (divided into 4 parts and 21 articles) given by the Irpef at three rates; from IRES to two; by a flat tax for all to be introduced by the end of the legislature (anticipated by the incremental one only for employees); and the review of tax expenditures (today more than 600 items). But the government’s intention to reorganize the entire tax system, as Deputy Minister Maurizio Leo confirmed in recent days, starting from making our system consistent with the European Union and international rules. The reform also includes the simplification of declaratory, assessment, collection and litigation procedures; the review of administrative and penal sanctions; the reorganization of the consolidated texts and the strengthening of the taxpayer’s statute. The revision of Irap, with its gradual elimination, and of VAT are also planned.

Mar 16, 2023

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