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.
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