Cover IMF Working Papers
Buy Book in Print
Toward a Comprehensive Tax Reform for Italy
Author:
Emile Cammeraat null

Search for other papers by Emile Cammeraat in
Current site
Google Scholar Close
and
Ernesto Crivelli
Search for other papers by Ernesto Crivelli in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 037
Language:
English
Publication Date:
21 Feb 2020
DOI:
https://doi.org/10.5089/9781513529226.001
ISBN:
9781513529226
ISSN:
1018-5941
Pages:
38
Keywords:
WP; reform option; VAT reform; property tax reform; Revenue neutral; tax liability; compliance gap; VAT liability; market value; tax expenditure; VAT rate; Disposable income; Personal income tax; Property tax; Personal income; Value-added tax; Italy; VAT; microsimulations; EUROMOD; taxable income; VAT system; VAT simulation; VAT compliance gap; base-broadening revenue-neutral VAT reform; revenue loss
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (15.1 MB) Download Epub
This paper evaluates elements of a comprehensive reform of the Italian tax system. Reform options are guided by the principles of reducing complexity, broadening the tax base, and lowering marginal tax rates, especially the tax burden on labor income. The revenue and distributional implications of personal income and property tax reforms are assessed with EUROMOD, while a microsimulation model is developed to evaluate VAT reform options. Simulations suggest that a substantial reduction in the tax burden on labor income can be obtained with a revenue-neutral base-broadening reform that streamlines tax expenditures and updates the property valuation system. In addition, a comprehensive reform would benefit low- and middle-income households the most, by lowering significantly their overall current tax liability, which results in increased progressivity of the tax system.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund