With Italy’s sustainable tax bonus, known there as the ‘Super Bonus’, the country is chasing its tail. The regime has led to a much larger budget deficit than previously calculated.
In recent years, Italians have managed to recover up to 110 percent of what they spent to make their homes more sustainable in the form of a tax credit. As a result, last year’s budget deficit turned out to be higher than expected, at 8%.
Budget deficit
In recent years, Italy has calculated its budget deficit differently than other EU member states. Instead of immediately including the tax credits in the government budget, this was done only afterwards. And this is not allowed, according to the new Eurostat guidelines. Italy too, like the other member states, must settle the budget deficit directly in the state budget.
Recently, Prime Minister Giorgia Meloni’s government ended the Super Bonus, introduced in 2020. By abolishing the tax credit, Italy wants to boost economic growth. There is an absolute need, because the country has not met the requirements of the Stability and Growth Pact for some time.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
