Prime Minister Mario Monti said Italy will raise the levy on capital gains and start shifting the focus of taxes from income to goods as part of an overhaul of the country’s tax system.
“We will present drafts of regulations aimed at rebalancing the tax system, including the taxation of capital gains,” Monti said in guidelines for Italy’s fiscal policy in the three years through 2014 posted on the Treasury’s website today. The proposals will also include “the gradual shift from direct taxation to indirect taxation,” according to the document.
A measure to raise the capital-gains tax to 20 percent from 12.5 percent was included in an austerity package passed in August by the government led by Monti’s predecessor, Silvio Berlusconi. The increase was then dropped during the plan’s approval by Parliament.