Tax breaks to boost recovery

The final draft of the 2021 budget, tabled on Friday in Parliament, provides for measures easing the pressure on households and corporations, such as the reduction of social security contributions by three percentage points and the suspension of the solidarity levy, so as to help the economy recover.

Notably, besides the tax breaks, the draft budget also includes a stock of 3 billion euros to be utilized in tackling the effects of the coronavirus on the economy. The total package of support measures concerning the pandemic amounts to €7.5 billion. If one adds this year's measures, the pandemic bill runs to €31.3 billion for the state.

It is with those support measures and the contribution of the Next Generation EU fund that the budget foresees an economic rebound of 4.5% in 2021, following an estimated 10.5% contraction this year.

The fiscal burden will be...

Continue reading on: