3 February 2015
The Italian budget for 2015, the
“legge di stabilata” has provided for a range of Government spending cuts to reduce its fiscal deficit to GDP ratio. Provision is included for increases in the VAT rate in each of the next three years if the revised fiscal deficit targets are not met. In that event, there would be a 2% increase at the start of 2016 (to 24%) and a further 1% (to 25%) in 2017. Finally, a 0.5% increase (to 25.5% might happen in 2018.
Currently the highest standard rate in Europe is 27% (Hungary).