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Archive » February 2021 » Personal Income Tax and Fiscal reform in Italy: main issues

Personal Income Tax and Fiscal reform in Italy: main issues

Giacomo Ricotti
February 2021 - n. 2
Keywords: Sistema tributario italiano, Irpef, riforma fiscale
Jel codes: H20, H24

The Italian tax system needs a broad and organic reform, aiming to support growth by encouraging labor supply and business activity, without increasing the overall level of taxation, already high in international comparison. Fiscal revenues, which are affected by the strong impact of the black economy and evasion, result in an excessive tax burden for those who respect the rules. Taxation must be redistributed, reducing especially the tax burden on labor, rationalizing it on consumption and on real estate. It is also essential to simplify the regulatory framework and improve tax justice, to ensure that the tax system is perceived as fair, reliable and transparent.

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