Italy avoids 24% standard VAT rate increase

2 November 2016

The Italian government recently presented a draft budget for 2017 which excludes the promised standard VAT rate increase to 24%.

At the end of 2015 the Italian government announced that if certain budgetary targets were not met during 2016 then the increase to the VAT rate would be implemented, however due to the key constitutional referendum that will be undertaken in December they do not want to introduce any unpopular tax rises.

Instead Italy will look to renegotiate the stringent terms of their Euro-currency membership in an effort to avoid further austerity measures being implemented in the country by the European Commission.