Measures in Italy’s draft 2020 budget aim to thwart methods of avoiding the traceability—and taxability—of transactions
should feature in Italian phrase books, for it is an expression every shopper in Italy encounters before long. Accompanied by a glance at a supposedly sickly payment terminal, it tells the customer proffering a card that only cash will do.
Last month the government disclosed that it intends to let the budget deficit run at 2.2% of GDP next year, compared to a previously planned 2.1%. To offset the VAT increase and fund limited tax cuts and spending increases, the government plans a range of new measures including a “web tax” on digital companies that aims to raise €600m next year. But it will still need €3bn-4bn from discouraging tax evasion if it is to meet its deficit target.
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