Over recent weeks, a former
Italian prime minister has vowed to repeal recent taxes on Italian property as
part of his campaign for re-election. Now, Silvio Berlusconi has gone one step
further and is pledging to refund last yearââ¬â¢s property tax payments in cash if
his party wins the election on 24/25 February 2013.
We look at how this may affect
Italian property owners next.
Berlusconi pledges to refund Italian property tax payments
Berlusconiââ¬â¢s centre-right
electoral coalition has been gradually narrowing the gap in the opinion polls
but is still trailing Pierluigi Bersaniââ¬â¢s left wing Democrats. The former prime
minister has said he will serve as economy minister if his party wins.
At a recent rally in Milan, Mr
Berlusconi promised to abolish the local property tax introduced by the
incumbent government to tackle the countryââ¬â¢s economic problems. “This tax
caused Italian families worry, anxiety, fear of the future,” he told
supporters of his People of Freedom party.
The BBC reports that ââ¬ËMr
Berlusconi is using his considerable political skills to appeal to an
electorate which has seen a draconian increase in taxes by the technocrat
administration led by Mario Monti during 2012ââ¬â¢.
The tax on ââ¬Ëfirst residencesââ¬â¢ was
originally abolished by Silvio Berlusconiââ¬â¢s government in 2008. However, it was
reintroduced in 2012 by current Prime Minister Mario Monti.
The tax is currently applied
(with local variations and an allowance for family dependents) at a standard
rate of 0.40 per cent to first residences. Other residences are subject to a
tax rate of 0.76 per cent.
While Berlusconi has long
pledged to abolish the tax on ââ¬Ëfirst residencesââ¬â¢, he is now also promising to
refund last yearââ¬â¢s tax payments in cash. This will clearly benefit anyone who
owns a property in Italy and lives in it as their main home.
Author :
Nick
Marr