There will be an extension to nappies & Co among the goods subject to the reduced rate of 5%. This was declared yesterday by Prime Minister Giorgia Meloni, during his speech of confidence in the Chamber of Deputies.
Among the actions that will be implemented by the government to increase disposable income, the leader of the FdI cited the reduction of taxes on productivity bonuses, the raising of the exemption threshold for social benefits, the improvement of well- be businesses, but he also said he wanted to “expand the range of primary goods that benefit from reduced VAT at 5%. Concrete measures that we will also address with the next finance law, on which we are already working”.
What are the products with reduced VAT
During the electoral campaign, the Brothers of Italy had already announced it, speaking of “widening the range of goods with reduced VAT, in particular with reference to the basket and products for children”. In the electoral platform, there is also another voice on the reduction of VAT, in particular on “products for early childhood such as diapers, baby bottles, infant formula and others”.
The main rate in the Italian system is 22%. Then there are the 10.5% and 4% discounts. The 5% category contains niche products, mainly related to health (the relaunch decree set this threshold for masks and other medical devices, while Covid-19 diagnostic tools and vaccines are exempt from VAT up to end of 2022).
When the energy crisis arrived, the 5% rate was also adopted for “the administration of methane gas used for combustion for civil and industrial purposes”.
Another VAT reduction concerned the Tampon tax. In the 2022 finance law, the rate on absorbent products and tampons for feminine hygiene was reduced from 22% to 10%. In the 2020 finance law, a 5% VAT was already provided for washable and compostable products and for menstrual cups.
