Tax, Padoan: reducing taxes to support first home building – Reuters Italy

ROME (Reuters) – reducing taxes is the first house necessary to support the construction industry, among the hardest hit by the recession.

The Economy Minister Pier Carlo Padoan defends the government’s fiscal strategy and says that with Matteo Renzi is common views, otherwise you would have already resigned.

“The construction industry has been greatly affected by the crisis and must be siostenuta. Obviously a tax reduction, ‘elimination of the tax on first homes is a necessary but not sufficient to revive the sector, but in the right direction, “said Padoan speaking at a conference of Confcommercio.

On Saturday, the President of the Council announced it would cut taxes by $ 50 billion over 5 years, including what has been done so far.

The first step is to eliminate from 2016 the Tasi on the first house, the ‘Imu on farm buildings and so-called bolt-on, the stationary machines.

Padoan ensures that Renzi put him aware of the plan before you announce it and adds: “If I had not shared before these measures probably be here today but doing another job.”

From the OECD chief economist, in 2013, Padoan urged the then government of broad alliances led by Enrico Letta to reduce taxes on labor rather than on real estate.

“This criticism is tempered when considering the fact that this is a sequence of cutting taxes, that is after tax cuts, which have reduced the tax wedge, “said Padoan.

The European Commission has so far refrained from commenting on the government’s plan: “It is too early for detailed reactions,” said the European Commissioner for Economic and Monetary Affairs Pierre Moscovici. More …