The Limited Times

Cottarelli, tax discounts increase, cost 68 billion

7/3/2021, 5:49:24 PM


"Despite the declarations of intent, fiscal expenses in Italy continue to increase, numerically and in terms of total cost. (ANSA)

(ANSA) - ROME, 03 JUL - "Despite the declarations of intent, tax expenses in Italy continue to increase, numerically and in terms of total cost. In November 2020 there were 602 tax expenses for a cost of 68 billion, data at the end of the year could exceed, respectively, 620 and 75 billion ".


    Carlo Cottarelli and Giulio Gottardo underline this in an article on the Italian public accounts Observatory, pointing out how, vice versa, in the document on the tax reform approved by the Chambers there is again talk of a cut in tax expenditures. But "despite the alignment of various political alignments in favor, in principle, of a reduction in tax expenses, their number and cost has continued to grow".


    "Growth has accelerated over the past year thanks to the widespread use of deductions, deductions and tax credits to combat crises. The growth in the number of tax expenditures has been accompanied by a decline in their average and Median size. costs less than 7 million euros, proof of the fact that there is an enormous number of micro-interventions aimed at restricted categories. This use of tax expenses causes a prolonged loss of revenue over time; creates distortions and costs for taxpayers; per capita, benefits the most the richest taxpayers ".


    "According to the Annual Report on fiscal expenses drawn up in November 2020, - they explain - fiscal expenses went from 444 in 2017 to 602 in 2021. However, at the end of 2021 the latter figure should exceed 620, due to the changes and extensions of the Budget Law (LdB) 2021 and the Ristori eSostegni decrees, all approved after the release of the Report. Between 2017 and 2021, the corresponding cost increased from 54.5 to 68.1 billion (75.7 including the 2021 LdB). an understatement because 151 of the 602 tax expenses surveyed by the Report are not quantifiable. At the same time, the average cost of tax expenses in force in the last 5 years has dropped from 210 million to just over 180 ". (HANDLE).