Giorgia Meloni challenges the Bank of Italy and upholds her budget project

The Italian Prime Minister has confirmed two important measures: raising the ceiling for cash payments to 5,000 euros and extending the flat tax for the self-employed.

Despite strong criticism from the Bank of Italy, Italian Prime Minister Giorgia Meloni on Monday confirmed two important measures in her 2023 budget: raising the ceiling for cash payments to 5,000 euros and extending the flat tax for car entrepreneurs. This was decided by the European Council on Wednesdayset the ceiling for cash payments at EUR 10,000, twice as much as the Italian governmentGiorgia Meloni argued in a video posted to Facebook.

«Therefore, I would like to ask those who have told us that we want to promote tax evasion in the European Union, will they promote fraudsters? I do not think soshe stressed, without specifying that the European Union (EU) is lowering this ceiling while Italy is raising it. Raising the ceiling for cash payments from 2,000 to 5,000 euros entails risks’encounter the need to further reduce tax evasion“warned one of the leaders of the Bank of Italy Fabrizio Balassone last Monday.

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More than 21 billion euros in energy aid

The central banker had also criticized the government’s decision to bring together the right and far right to give merchants the right to refuse their customers payment by bank card for amounts less than 60 euros without incurring penalties, which he said could encourage ‘tax evasion’. . Fabrizio Balassone recalled that “the definition of effective administrative sanctions in case of refusal“accept electronic payments”was one of the goalsto be achieved by Italy under the European Recovery Plan, of which it is the first beneficiary. Tax evasion, especially that related to VAT, weighs heavily on the peninsula’s economy, costing Italy around €100 billion a year.

Giorgia Meloni also defended the extension of a 15% flat tax for car entrepreneurs to an annual income of 85,000 euros instead of 65,000 now. Yet Fabrizio Balassone had estimated that “in times of high inflation, the coexistence of a flat tax regime» for the self-employed and «of a regulation subject to progressivity“leads”an additional finefor employees.

«An employee has two thirds of his contributions paid by the employer, a self-employed person pays the contributions in full“, assured Giorgia Meloni for his part. The draft budget, which provides more than €21 billion in support measures for households and businesses in the face of skyrocketing energy prices, must be approved by parliament before the end of the year.

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