ROME, Dec 5 (Reuters) – Decreasing regulatory curbs on the usage of money will gas Italy’s black economic system and make it more durable to crack down on tax evasion, a high central financial institution official mentioned on Monday.
Prime Minister Giorgia Meloni’s right-wing authorities in its 2023 finances has proposed scrapping fines for retailers who refuse to just accept playing cards for funds below 60 euros ($63.20), in a transfer seen as going towards the spirit of commitments taken with the EU.
Rome additionally plans to lift a restrict on money funds to five,000 euros from a earlier restrict of 1,000 euros from subsequent 12 months.
“Larger thresholds favour the black economic system,” the central financial institution’s head of economics analysis Fabrizio Balassone informed parliament.
“Limitations to money use pose a hurdle to a number of types of crime and (tax) evasion.”
His unusually vital remarks upset some politicians within the ruling coalition.
Francesco Filini, a deputy from Meloni’s Brothers of Italy’s occasion, mentioned: “it’s fairly apparent that the central financial institution, an entity owned by the banks themselves, helps digital funds,” including that such funds generate income for banks.
The Financial institution of Italy, whose independence is safeguarded by European treaties, is greater than 60% owned by home banks and insurers.
Balassone added that the 2 measures risked “clashing with the drive to modernise the nation” by way of Italy’s post-Covid nationwide Restoration and Resilience Plan.
CASH OR CARD?
One of many so-called coverage “targets and milestones” within the Italian plan agreed with Brussels in return for round 200 billion euros of EU funds was the introduction of sanctions for retailers who refuse to take card funds.
These fines, which quantity to 30 euros plus 4% of the worth of the transaction, had been one of many situations for the 21 billion euro tranche of the Restoration Fund cash that Rome secured within the first half of this 12 months.
Nonetheless, Meloni mentioned on Sunday she would possibly water down plans to make it simpler to settle small funds with money relatively than playing cards, following talks with the European Fee over the problem.
Supporters of money funds say they save shopkeepers costly banking charges, however Balassone argued that the price of coping with money as a share of a transaction is increased than that of debit and bank cards, citing central financial institution estimates from 2016.
Round 100 billion euros of tax are evaded yearly in Italy, in accordance with Treasury knowledge.
Balassone mentioned that in 2019 the variety of annual digital transactions per capita in Italy stood at round 130, which was significantly decrease than the common of just about 300 for the euro space.
($1 = 0.9499 euros)
(This story has been corrected to repair the determine for fines in paragraph 11.)
Extra reporting by Valentina Za;
Enhancing by Federico Maccioni and Keith Weir
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