The president of the Republic, Sergio Mattarella, signed the Sostegni decree law, passed on Friday by the Council of Ministers.
Here comes the green light for aid: refreshments for businesses and the self-employed, extension of the redundancy fund and of blocking of layoffs, postponement of tax deadlines and funds for health and the vaccination plan. After a series of postponements and a long tug-of-war in the majority over the cancellation of the old tax bills, the government has passed the Sostegni decree which has 32 billion in extra deficit already approved and paves the way for a new intervention which will be financed with a further budget shift request in April.
Support Decree: the words of Prime Minister Draghi
“It is a 32 billion operation that is still partial and will be corrected with a new deviation with the Def in April. This intervention is a first step, there will be a second absolutely necessary ”, he assured Prime Minister Mario Draghi explaining that the magnitude of the additional deficit will be defined on the basis of the evolution of the pandemic. An agreement was reached on the removal of the old tax bills, a knot on which the discussion had stalled and which caused the government meeting to be postponed for more than three hours. The Democratic Party and especially Leu they opposed a maxi amnesty but Lega and Forza Italia have put their feet up. Matteo Salvini brought together the ministers and some Northern League economic experts to the Mise da Giancarlo Giorgetti and insisted on expanding the audience of beneficiaries, collecting the support of Forza Italia and most of the exponents of the 5 Star Movement.
Eventually mediation was found and expected the excerpt of the old tax bills, those entrusted from 2000 to 31 December 2010, up to 5 thousand euros and with an income ceiling of 30 thousand euros. Subsequently, perhaps already in the parliamentary path of the decree, we could proceed to extend the time span until 2015, as initially hypothesized. The agreement also provides for the initiation of the tax collection reform.
“I’m almost there 5 billion for health and safety. The main stake is for the purchase of vaccines and drugs, 2.8 billion and then there are the funds used for logistics “, said the Minister of Economy. Daniele Franco, underlining that the decree also provides for an expenditure of “8 billion for work and the fight against poverty”. It will continue until June 30, the freeze on layoffs for companies that have ordinary layoffs, while for small businesses that do not have ordinary tools, the redundancy block will be until 31 October.
“We continue until autumn in areas where these tools do not exist also in view of the reform of social safety nets”, said the Minister of Labor. Andrea Orlando. Double track also for the extension of the redundancy fund: for companies that have the ordinary cig, it will be extended, with a reason for Covid and without an additional contribution, by 13 weeks that can be used by the end of June. For small and medium-sized enterprises and artisan businesses and those without Cig, the free Covid layoffs can be used between 1 April and 31 December 2021.
The decree also provides for the suspension of casualties for forward contracts contemplated by the Dignity decree until 31 December. Citizenship income refinanced for one billion while it will be renewed for three months (March, April and May) emergency income for families in difficulty (the income threshold is raised for those on rent). Categories arise. Insufficient resources, the measure represents “only a placebo that does not cure the crisis”: Confesercenti’s tough stance. For the president of Confartigianato, Marco Granelli, “The amount of resources to be allocated to entrepreneurs should be increased, in particular for the sectors most affected, from fashion to wood-furniture to the tourism sector”.
Well for the general secretary of Uil, Pierpaolo Bombardieri, “the extension of the redundancy block until the end of June” but, he insists, “must continue, knowing that only in September, when the effects of the vaccine will unfold in all their effectiveness, will it be possible to begin to see a recovery productive and occupational “. The union says instead “Totally disagree with the choice of scrapping the tax bills”.
“It is an amnesty, but it is an amnesty of fines of over 10 years ago that we have contained: 5,000 euros in amount correspond to 2,500 net because there are interest and penalties. In addition, we have contained it within an income ceiling. So this reset allows the administration to pursue the fight against tax evasion more effectively but it is clear that the state has not worked because it allowed the accumulation of millions of files ”, explained Draghi, underlining that“ a small reform of the collection is necessary ”.
Satisfied Leu who claimed credit for having rejected “generalized amnesties”. While Salvini remarked “the acceleration of the Lega: 16 million old tax bills finally canceled, with the commitment to continue with a wider Fiscal Peace by April“. On the fiscal front, payments of payment bills and executive notices remain suspended until 30 April. The deadline for notifications has been extended by 12 months and 24 months that of prescription. There will also be more time to pay the installments of the Scrapping ter and of the balance and excerpt. In addition, the Revenue Agency will make the pre-filled declaration available to citizens on May 10, instead of April 30, with the postponement of the terms of the single certifications to the end of March. There is also the amnesty for VAT numbers that have suffered a loss of 30% of turnover in 2020 compared to 2019.
Pillar of the measure is the new refreshment machine that says goodbye to the Ateco codi. In the field 11 billion euros to compensate approximately three million VAT numbers, between companies and professionals, with a turnover of up to 10 million euros who have recorded losses of at least 30% in the average monthly amount of turnover in 2020 compared to that of 2019. Expected five bands with percentages ranging from 60 to 20%, based on the size of 2019 revenues, on which to measure the contribution: 60% for companies up to 100 thousand euros, 50% between 100 thousand and 400 thousand euros, 40% between 400 thousand and 1 million , 30% between 1 and 5 million and 20% between 5 and 10 million. The compensation will be granted by bank transfer or in the form of a tax credit and will range from a minimum of € 1,000 for individuals (€ 2,000 for other subjects) to a maximum of € 150,000. On average it will be 3,700 euros.
They amount to 1.7 billion resources for the tourism sector, one of the hardest hit by the pandemic. The decree allocates 700 million for the mountains (ski lifts, ski instructors, commercial activities, huts, ski rentals), 900 million for seasonal workers, the self-employed of tourism and spas and 100 million for fairs. A part of the maxi fund from 200 million for wedding companies and catering in the historic centers, as well as part of the 10 billion of the non-repayable fund. About 5 billion will be allocated to healthcare and the green light for the administration of vaccines in pharmacies arrives.