Government illustrates principles of enabling law on taxation to trade unions

“Embarking on a path with openness and readiness for dialogue throughout the parliamentary process”

A broad enabling law to structurally revolutionise the Italian tax system, fifty years on from the last overall reform, which dates back to the 1970s (enabling law no. 825 of 1971). 

During a meeting with trade union representatives at Palazzo Chigi today, Minister of Economy and Finance Giancarlo Giorgetti, Deputy Minister Maurizio Leo and Undersecretary to the Presidency of the Council of Ministers Alfredo Mantovano illustrated the principles and time frames of the Meloni Government’s ‘New Tax System’, involving a comprehensive review of taxation in Italy.

According to the time frames announced by the Government representatives, the enabling decrees (containing the regulations to implement the principles included in the enabling law) are expected to be adopted within 24 months from the entry into force of the law itself. They also assured the trade union representatives attending the meeting that there would be “maximum openness to dialogue and discussion throughout the parliamentary process” to approve the enabling law and subsequent implementing decrees.

Overall, the reform aims to favour employment, with the priority objectives of helping households, young people and women, reducing the tax burden on companies, increasing employment and investment, simplifying compliance, fostering cooperation with the tax authorities and incentivising the return of capital. In this context, one of the main objectives the Meloni Government intends to vigorously pursue is the fight against tax evasion, in relation to which specific measures are under consideration to incentivise ‘spontaneous compliance’ among taxpayers, with the overriding aim of having a ‘friendly tax authority’ that interacts with them.

Following today’s meeting with trade union representatives, a round table with trade associations and professional bodies is scheduled for tomorrow. This dialogue-based approach demonstrates the Government’s will to achieve a reform that is as concrete and as shared as possible.