A leading Italian consumer group said Wednesday that Premier Mario Monti's government risked killing Italy after it confirmed that the top band of value added tax (IVA) will go up from 21% to 23% in October.
The hike is part of Monti's 'Save Italy' austerity package of spending cuts and tax increases that was approved in December to put Italy on track to balance the budget by 2013 and stop the debt crisis spiralling out of control.
Monti's emergency government of non-political technocrats had said the IVA increase would only be imposed if necessary.
But Junior Economy Minister Vittorio Grilli said late on Tuesday that there was no plan B that would make it possible to avoid the tax hike.
Consumer group Codacons blasted the measure, which it said will cost Italian families made up of three people 418 euros a year on average.
"Obviously the Monti government is not making do with wiping out the deficit, it also wants to knock down the debt even at the cost of killing Italy and the Italians," Codacons said in a statement. The association said that the move would further hit consumer spending and growth, which is negative at the moment after the economy slipped into recession in the second half of last year.
Sono bellissimo...
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