The European Commission called on
Italy to maintain the progressive nature of its income-tax
system on Wednesday in its spring package of recommendations.
Premier Giorgia Meloni's government has presented a tax reform
plan that will see Italy's income-tax bands cut from four to
three as part of the process of bringing in a flat-tax on
earnings by the end of the parliamentary term.
"It will be crucial to maintain the progressive nature of the
tax system, reduce complexity, increase the incentives to work
and step up past efforts to combat tax evasion," the Commission
said.
"In particular, reducing the number of personal income tax
brackets risks hampering the progressivity of the tax system".
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