The Italian government's proposal to halve a planned increase to Italy's value added tax (VAT) in 2013 means forgoing 3.28 billion euros in revenues, according to a technical report on the design of a new bill aimed at stabilizing Italian public finances, which is called the 'Stability Law'. The bill calls for increasing the VAT by 1% rather than 2%. The VAT is currently 21% on most sales.
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