Italy’s high tax ‘burden’ stalls economic rebound

Italy's high tax 'burden' stalls economic rebound
The government should be focusing on spending cuts, not increasing taxes, the report said. Taxes photo: Shutterstock
Italy’s tax system has become increasingly costly and inefficient since the economic crisis, with the burden falling on workers and business owners, a new study has found.

Italy’s response to the economic crisis has put a heavy financial burden on workers, when the government should instead be focusing on cutting public spending, a report by research centre ImpresaLavoro has found. 

The Italian system is more costly and inefficient than those of four other countries studied – France, Germany, Spain and the UK – with employment tax in Italy being highest.

While the situation is now improving for the self-employed and small business owners in the UK, for example, taxes in Italy has increased over the past year.

“The burden of the fiscal system contributes to the stagnation of the country in various ways: it reduces competition, wastes time and resources in bureaucratic procedures, and ultimately reduces incentives to produce, work and save,” Massimo Blasoni, ImpresaLavoro president said.

“It remains a priority to reform the fiscal system, making the tax system less complex, moving employment and business taxes to consumers, and reducing the fiscal pressure by at the same time cutting spending,” he said.

According to a World Bank Doing Business 2014 report, Italy ranked 138th for the ease of paying taxes. The UK came in 14th, followed by France (52nd), Spain (67th) and Germany in 89th place.

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