Tuesday, May 30, 2023
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Italy downplays plans to boost cash payments after EU criticism

ROME (Reuters) – Italy will scrap some plans to facilitate cash payments for goods and services after criticism from EU authorities, Economy Minister Giancarlo Giorgetti said on Sunday.

Draft Budget 2023 Government proposes changes to the current system where sellers risk fines if they refuse to accept credit card payments and says it will not Impose any penalties on the following transactions EUR ($63.49).

The move drew criticism from the European Commission, which said it was inconsistent with previous EU advice to Italy to improve tax compliance, and Giorgetti told parliament late Sunday that the government had backed down.

“We intend to eliminate point-of-sale measures,” he said in testimony on the budget, adding that some sort of compensatory measure might be introduced to help shopkeepers pay commissions on card transactions.

“I hope there will be reflections on the European level of the council,” he added. According to the Ministry of Finance, tax evasion occurs every year.

The current penalty amount is 21 Euros plus 4% of the value of the item. One of the conditions of the billion euro portion of the COVID Recovery Fund funding.

Despite the latest developments, Prime Minister Giorgia Meloni, who took office in October, continues to indulge cash even more than her predecessors.

Her first budget must be approved by parliament by the end of the year, raising the cash payment limit to 5 from next year, euros, above the previous upper limit of 1, euros.




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