Latest News

Italy cash payments plan breaks spirit of EU accord, expert says

Italy cash payments plan breaks spirit of EU accord, expert says By Reuters

Breaking News

‘;

Economy 11 minutes ago (Nov 24, 2022 17:20)

© Reuters.

By Giuseppe Fonte and Gavin Jones

ROME (Reuters) – A proposal in Italy’s draft budget is not in line with its previous commitments to incentivise electronic payments as a way to boost tax compliance, according to a former Italian Treasury official who helped negotiate the accords.

One of the so-called policy “milestones” in Italy’s pandemic Recovery Plan agreed with Brussels in return for around 200 billion euros ($208 billion) of EU funds was the introduction of sanctions for retailers who refuse to accept card payments.

Giorgia Meloni’s right-wing government intends to scrap the requirement to accept electronic settlements for purchases below 30 euros, according to a draft of its 2023 budget approved by cabinet on Tuesday.

Economics professor Alessandro Santoro, a former Treasury official who hammered out some of the terms of Rome’s Recovery Plan with Brussels under the former administration of Mario Draghi, said that while Meloni’s plan may not formally break Italy’s contract, it broke its spirit.

“The proposal to reduce the scope of a previous law that introduced the obligation for sellers to accept electronic payments, is not in line with previous commitments to incentivise electronic purchases as a way to increase tax compliance,” Santoro told Reuters.

However, he said that because the Recovery Plan milestone mandated sanctions but did not specify the details of how they should be applied, Rome had probably managed to skirt the risk of a clash with Brussels.

“The scheme is formally compliant with the EU-funded plan,” Santoro said.

Meloni is more indulgent towards cash than her predecessors, something which critics say risks encouraging tax dodgers in a country where more than 100 billion euros evaded every year, according to Treasury data.

The budget also raises a limit on cash payments to 5,000 euros from a previous limit of 1,000 euros from next year.

The imposition of the sanctions, which amount to 30 euros plus 4% of the value of the transaction, was one of the conditions for the 21 billion euro tranche of the Recovery Fund money that Rome secured in the first half of this year.

Italy has so far obtained almost 67 billion euros of the roughly 200 billion euros of EU funds it is due through 2026.

It is eligible for a further 19 billion euros at the end of this year provided it can complete the 55 targets and milestones set for the second half of 2022. ($1 = 0.9609 euros)

Italy cash payments plan breaks spirit of EU accord, expert says

Real estate stocks power Europe’s STOXX 600 to fresh three-month highBy Reuters – Nov 24, 2022

By Sruthi Shankar and Devik Jain (Reuters) -Europe’s STOXX 600 index closed at a fresh three-month high on Thursday led by gains in real estate stocks after minutes from the…

FTSE 100 ends flat as ex-dividend trades weigh; Dr. Martens slumps on margin warningBy Reuters – Nov 24, 2022

By Shashwat Chauhan and Shristi Achar A (Reuters) -London’s blue-chip FTSE 100 index was subdued on Thursday as gains in miners were offset by losses in shares trading…

Ukraine’s finance minister says reconstruction costs are risingBy Reuters – Nov 24, 2022

By Marc Jones LONDON (Reuters) – Ukraine’s Finance Minister Serhiy Marchenko has said more Western aid is needed to help it meet its growing reconstruction costs following this…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News