Economics

Italy’s Love of Cash Is Tested by Conte’s Tax Capture Trick

  • Consumers can win lottery while paying for groceries by card
  • Italians have confounded previous attempts to shrink cash use
One official estimate from 2016 showed that 86% of transactions in Italy took place with cash.Photographer: Marco Bertorello/AFP via Getty Images
Lock
This article is for subscribers only.

Italian Prime Minister Giuseppe Conte is about to embark on the country’s most experimental stimulus of the coronavirus crisis yet in a bid to wean citizens off cash -- and the tax avoidance that comes with it.

His government is working on a measure to refund 10% of payment card transactions, handing back a maximum of 300 euros ($354) per person, in a stimulus that runs until 2022, according to officials with knowledge of the plan. As a sweetener, participating consumers will also qualify for a lottery with a prize pot totaling 300 million euros.