Italy reaches agreement on unpopular housing tax
ReutersROME -- Italy's government reached a deal on Wednesday to reform an unpopular property tax, easing a source of persistent tension which had threatened to split the fragile coalition of traditional rivals from the left and right.
August 30, 2013, 11:12 am TWN
The cabinet agreed to abolish the housing tax IMU from the start of 2014, Prime Minister Enrico Letta told reporters, replacing it with a new levy known as the “Service Tax.”
The two installments of IMU on principal residences which were due in September and December 2013 will be scrapped, Letta said after the cabinet meeting.
Silvio Berlusconi's centre-right People of Freedom (PDL) party has insisted that IMU on principal residences must be abolished as a price for backing Letta, raising fears that failure to reach a deal could provoke a political crisis.
The tussle over the tax has exacerbated an already bitter political climate caused by Berlusconi's conviction this month for tax fraud and an approaching vote in the Senate on whether to expel him from parliament.