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Italy Should Weigh Return to ICI Property Tax, Central Bank Says

Prime Minister Silvio Berlusconi should consider reintroducing the ICI tax on main properties to rebalance the weighting of other levies on Italian taxpayers, the central bank said.

“The exemption of main properties from the ICI tax represents an anomaly in comparison with other countries,” Daniele Franco, head of economic research at the Bank of Italy, said at an hearing yesterday at the Senate’s Finance Committee in Rome.

The taxation on citizens’ first homes, which helped fund local administrations, was abolished by Berlusconi’s government in 2008. The ICI tax still applies to other properties.

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