At its 15th annual forum the President of Confcommercio, the federation representing small and medium-sized enterprises, professionals and sole traders in Italy, re-asserted his appeal for the Government to link a reduction in public expenditure with a concerted effort to reduce taxation.
Following the initial EUR10bn (USD13.8bn) package of individual and corporate income tax-reducing measures recently announced by new Government, Italy’s economy is still recovering and the outlook remains less than favorable for commercial firms, and those involved in tourism, transport, and other services.
Confcommercio indicated that the top priority for the Government should be to make cuts in unproductive and inefficient public spending. Italy’s bureaucratic procedures are still too complex and could be cut. Therefore, while praising the Government for making the first move to reduce the tax burden on families, which could provide an initial boost to consumer demand, Confcommercio is asking for further movement in the same direction for the benefit of sole traders and small businesses that “should not be discriminated against based on a prejudice that they are all tax evaders.”
Using the resources available from spending reductions, and from the ongoing actions against tax evasion, the Government should be able to reduce the burden on all taxpayers over the medium term without jeopardizing Italy’s fiscal consolidation efforts.
