Economic Development Minister Passera: No new taxes but no lower taxes

Last Tuesday, Economic Development Minister Corrado Passera ruled out the prospect of tax cuts in Italy in a near future.

"Reducing taxes to those who pay them is a goal, although not on a short term" said Mr. Passera.

The Mario Monti government  approved last December a burdensome austerity package aimed at restoring Italy's public finances.

This tax increase is very likely to make the current recession even deeper, as Bank of Italy Governor Ignazio Visco has underlined, since the austerity package adopted by the government might turn out in a vicious circle of negative growth damaging State revenues in the long term.

Considering tax cuts an issue on the priority list for any government, Passera said that reducing taxes is necessary and in order to do so, it is important to create the conditions to make everybody pay them, by fighting tax evasion and supporting economic growth.

However the Economic Development Minister has also confirmed that reducing taxes is unthinkable in the short term.

At the same time Mr. Passera reassured that the government is not likely to impose new taxes and, as Prime Minister Mario Monti said, the spending review operation must place us in the condition whereby an automatic VAT increase must be avoided, as it would not have a positive effect on economy.

Passera has also firmly ruled out the introduction of a Property tax, despite the polemics over the IMU (real estate property tax) tax.

As far as plans regarding the building of a bridge connecting mainland Italy to Sicily across the Strait of Messina, the Minister added, is not a government priority.

Being asked whether he will candidate himself for next elections, Passera said he is not focusing on that at the moment, now, his target is performing well in 2012.