News: Italy to amend controversial tax reforms

AFX News reports that the Italian government last week announced plans to replace the existing value-added tax with a non-deductible property tax of 10% of the value of the given asset, which would be deductible over 10 years.

This move sparked criticism as it threatens to wipe out around 1.4 bn euros off the market value of several real estate companies.

However, the government has this week announced that changes will be made to the controversial property tax reform in a statement this week from deputy economy minister Vincenzo Visco.

The statement did not elaborate on the proposed amendments but did say that the government has finished gathering information and has decided to make "certain changes" to the tax measures announced last week "especially regarding property."

The new reform would also apply retrospectively to buildings acquired after 1998.

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