Italy plans a €2 levy on small parcels from non-EU countries and will double its tax on financial transactions to boost state revenue.
ROME: Italy plans to introduce a levy on small packages of goods sent from non-EU countries, targeting online platforms such as Shein, and intends to double its tax on financial transactions, official documents showed, to boost government revenue.
Rome will impose a tax of 2 euros on parcels valued at up to 150 euros ($175), with the levy expected to generate 122.5 million euros next year and 245 million in both 2027 and 2028, according to parliamentary amendments seen by Reuters.
The plan to tax small parcels is in line with a proposal being discussed at European Union level. Italy wants to target online platforms such as Shein and Temu to protect its fashion industry from low-cost foreign imports mostly from China.
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The government also intends to increase a tax on the transfer of shares and other financial instruments, in a move that should yield an additional 337 million euros from next year. The tax rate will rise to 0.4% from 0.2% of the value of transactions carried out on non-regulated markets and to 0.2% from 0.1 on regulated ones.
Prime Minister Giorgia Meloni’s government forecast in September that the tax burden — the level of taxes and social contributions as a proportion of GDP — is expected to rise to 42.8% this year from 42.5% in 2024, among the highest levels in developed economies.
As part of the new measures, the insurance premium for driver accidents will be taxed at 12.5% compared to the current 2.5%, while banks face further restrictions on being able to use past losses to reduce their tax bills.
The documents show Italy has dropped plans to scrap a tax break on short-term rentals, allowing landlords to continue to benefit from a reduced tax rate of 21% on income from one property instead of 26%.
However, the ruling parties have agreed to lower to three from five properties the threshold at which short-term rental activity must be registered as a business, which carries heavier taxation and additional costs.
Short-term rentals, often listed on online platforms such as Airbnb, are common in tourist hotspots in Italy and elsewhere in Europe, but are politically sensitive amid Europe-wide protests over overtourism and soaring rents.
($1 = 0.8508 euros) – Reuters
