Tax Reform, Maximum Plan with Delegated Law: Rate Review

The reform aims to overturn the personal income tax structure and value-added tax rates. In the basis of the plan, the fight against tax evasion and reduce the tax burden.

Tax reform is a stated goal. Simplifying the tax system, while relieving taxpayers and reducing tax evasion, is a plan that, if successful, would be a true Olympic golden goal. Italy seems willing to pursue this a lot, In the National Recovery and Resilience Plan (Pnrr) Coming to Europe, it has already given indications of an enabling law that would make way for reform. The deadline was July 31, but it will take a few more days. However, nothing prevents changes in the roadmap, at least in terms of goals.

In fact, the expected changes are many and all of them are of a certain importance. Especially with regard to personal income tax rates, A real revolution is expected. The first goal: to increase the salaries of the middle class. Certainly not a trivial matter, considering they are the biggest band in the country. After canceling IRAP and paying the installments of the second deposit.

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Tax Reform, Irpef Plan and Value Added Tax

Basically, a massive transformation. However, he was waited for some time and put on the top of the to-do list by the Draghi government. The law of authorization, in and of itself, should allow you to start the gear Just enough to start the real fix. Which, at hand, should review almost the entire tax system. Starting with personal income tax rates, there are currently five of five income brackets: 23% within 15 thousand euros; 27% between 15000.01 and 28,000 euros; 38% between 28.000.01 and 55.000 euros; 41% between 55.000.01 and 75.000 euros; 43% more than 75,000 euros.

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With regard to salary increases, the reform should provide for a reduction in tax rates in this sense:

– within 25,000 euros, 23%

– between 25000.01 and 55,000 euros, 33%;

More than 55,000 euros at a rate of 43%.

Renewal is also expected in terms of VAT. Tax reform should modify the system that provides for one regular rate and three subsidized rates, Reduce the total number from four to twoBy reducing the normal rate by about two percentage points. So the only subsidy will be between 5% and 10%. A system that would also address the issue of VAT evasion.