Italian Minister Hints At Business Tax Cut

by Ulrika Lomas, Tax-News.com, Brussels

08 November 2004

Italian Economy Minister Domenico Siniscalco indicated last week that the government would be prepared to cut a business tax as part of a wider reform of state-funded grants to the private sector.

The move comes in response to complaints from Italian industrialists, particularly the boss of Fiat, Luca Cordero di Montezomolo, who is also head of business lobby Confindustria, that the proposed package of tax cuts is too centred on individual taxpayers and families, and does not contain enough to help business.

"We've known about Confindustria's stance on Irap for some time and I've spoken about it with Montezemolo," Siniscalco told reporters, adding that relief may be possible as part of changes being made to the system of state incentives to business.

Deputy industry minister Adolfo Urso also told Mr di Montezomolo on the sidelines of a meeting organised by the Italy-Japan association that the first steps in reducing the tax could be made by allowing SMEs to deduct expenses for innovation, training and research.

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