Budget raises tax on baby, female hygiene, tobacco products

(ANSA) - ROME, OCT 24 - Tax increases on baby products, feminine hygiene products and tobacco products are just some of the measures set out in the draft 2024 budget bill worth 24 billion euros approved by the government of Premier Giorgia Meloni on October 16 but the details of which became available only on Tuesday.
    VAT on powdered milk, baby food and other items and on sanitary pads and tampons is set to rise from 5% to 10% according to the 91-article proposal that is due to begin its journey through parliament before the end of this week.
    In Italy the standard VAT rate is 22%, with reduced rates applied to certain specific goods and services.
    Instead introduction of the so-called sugar and plastic taxes - levies respectively on sugary non-alcoholic drinks and on single-use plastic items introduced in the 2020 budget but never actually applied - has been postponed again for a further six months.
    Under the terms of the budget bill the two new taxes should now take effect on July 1, 2024.
    The proposal also ups both the specific tax component and the minimum tax burden on cigarettes, leading to an increase of between 10 and 12 eurocents per packet as of next year.
    In addition, the budget confirms the planned increase in tax on heated tobacco products in 2024 and 2025 and raises it by a further point in 2026.
    Likewise, it increases the cost of cut tobacco by around 30 eurocents per packet. Electronic cigarettes are also set to increase in cost by 1% per year starting from 2025.
    In other sections of the budget bill, the government has provided for an increase of up to 2 euros per night in the existing local tax on overnight stays by tourists during the 2025 Jubilee Year.
    The additional proceeds can be used to fund activities related to the Holy Year celebrations, which are expected to bring millions of pilgrims and tourists to Italy, and especially Rome.
    Introduced in Italy at the start of the last decade, the tourist tax differs from city to city and according to accommodation type.
    In Rome it currently ranges from a minimum of 3 euro per night to a maximum of 10 euro per night for a maximum of 10 consecutive days.
    In addition, the government has allocated 200 million euros to migrant reception in 2024 and 300 million euros in 2025.
    The funding, which comes on top of additional resources allocated for migrant reception in a recent government decree, will also be used to support local authorities in their reception efforts, including in favour of minors arriving in Italy without a parent or legally responsible adult.
    So far this year Italy has seen an 81% increase in the arrival by sea of migrants and refugees compared to the same period in 2022.
    The rise in numbers has put the national reception system under severe pressure, with the cities, which are responsible for second-level reception projects focusing on integration and inclusion and for special reception facilities for unaccompanied minors, coming under particular strain.
    The government is also asking local and regional authorities to contribute to its planned two billion euro spending review by cutting a total of 600 million euro per year.
    Under the draft proposal, regions are expected to reduce their spending by 350 million euros per year, excluding on health care and social rights, provinces by 50 million euro and municipalities by 200 million euro. (ANSA).