“We’ll discuss the new budget forecasts today ... The first good piece of news is that we’ll offset the VAT hike, we have the €23 billion,” he said.
Conte added he would like to increase workers’ net pay and halve the VAT rate on energy bills to 5 per cent as well as cut it to 1 per cent on pasta, bread and fruit for poorer households.
The new Conte government, an alliance of the anti-establishment Five Star Movement (M5S) and the centre-left Democratic Party (PD), is seeking to boost a stagnant economy while ensuring smooth negotiations with the European Commission.
Coalition lawmakers have clashed over a proposal to tweak the sales tax, with some warning that even tightly targeted increases would be politically dangerous.
Conte’s previous administration twice risked a debt procedure over populist election promises, and he’s eager now to reassure investors and the commission about the finances of one of Europe’s most indebted countries.
Conte said his priorities for the budget include encouraging Italians to use debit and credit cards instead of cash, to counter tax evasion.
