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Cost of e-cigarettes set to rise in Italy

The price of electronic cigarettes in Italy could be set to rise sharply as the Italian government considers a taxation on the devices, La Stampa reported.

Cost of e-cigarettes set to rise in Italy
The price of electronic cigarettes in Italy is set to rise. Photo: Planetc1/Flickr
A draft bill has been submitted to the Council of Ministers.
 
If approved, users of 'e-cigarettes' will have to pay between €52 and €133 for their kits, up from between €33 and €84, La Stampa said. 
 
The move would have a severe impact on a sector which has created an estimated 5,000 jobs in Italy in the past few years. There are more than 2,000 e-cigarette shops across the country. Smokers have also been able to save thousands of euros as they opt for a healthier alternative to the traditional tobacco-filled cigarette.
 
Massimiliano Mancini, the president of the National Association of Electronic Smoking (Anafe), told Il Sole 24 Ore that the move is 'nonsense' and would lead to the closure of at least 60-70 percent of the shops, along with 3,000 job losses.
 
Meanwhile, Italian health minister Beatrice Lorenzin said today that an ordinance has been signed banned electronic cigarettes in schools.
 
Invented in China, the battery-powered, pen-sized devices contain liquid nicotine that turns into vapour when inhaled. They are designed to give the user a similar sensation to that of smoking a cigarette. 
 
Their popularity has spiked in recent years although health experts have expressed concerns about chemicals contained within the liquid nicotine, which includes the compound propylene glycol.
 
The government said yesterday that an increase in VAT from 21 percent to 22 percent will pushed back to October 1st from July 1st.

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TAXES

Italy to cut income tax for lower earners

Italy will drop its income tax bands from five to four and reduce tax rates for those on lower incomes under an agreement reached by key figures in the Italian government on Thursday.

Italy's finance minister Daniele Franco has reached an agreement with the government’s majority parties to cut income tax for lower earners.
Italy's finance minister Daniele Franco has reached an agreement with the government’s majority parties to cut income tax for lower earners. Andreas SOLARO / AFP

Going forward, personal earnings of between 28,000 and 50,000 euros will be taxed at 35 percent in Italy, down from the current rate of 38 percent.

Taxes on earnings between 15,000 and 28,0000 euros will be reduced from 27 percent to 25 percent.

The 41 percent tax band for earnings between 55,000 and 75,000 euros will be abolished altogether, with all income over 50,000 euros now set to be taxed at the top rate of 43 percent.

READ ALSO: EXPLAINED: How Italy’s proposed new budget could affect you

Yearly incomes below 15,000 euros will continue to be taxed at 23 percent.

The agreement was reached as the result of negotiations between Italy’s Economy Minister Daniele Franco and representatives of the majority parties in the Italian government over how to distribute the 8 billion euro tax cut provided for in Italy’s 2022 Budget Law.

Under the terms of the agreement, approximately 7 billion euros will go towards overhauling Italy’s personal income tax, or ‘IRPEF’, though these reforms.

READ ALSO: The rules and deadlines for filing Italian taxes in 2021

The remaining one billion will be used to eliminate the regional production ‘IRAP’ tax on sole proprietors and the self-employed.

The so-called ‘Bonus Renzi’, introduced by former Italian prime minister Matteo Renzi in 2014, which initially awarded an 80 euro and later a 100 euro tax bonus to lower earners, will be scrapped altogether.

Tax experts estimate that the reforms are likely to translate to average yearly savings of 100 euros for those on a 20,000 euro annual salary; 300 euros for those earning 30,000 euros per year, and around 600 for those receiving 40,000 euros per year, according to the Italian news daily Corriere della Sera.

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