ROME, March 12 Italian Prime Minister Matteo
Renzi said on Wednesday that the government had approved 10
billion euros ($13.90 billion) in tax cuts for low- to
middle-income workers and a reduction in business tax by the
beginning of May.
He said the income-tax reductions would be funded by a mix
of spending cuts and extra borrowing room freed up in part
thanks to falling bond yields.
"The funding is fully programmed," Renzi told reporters at
his first full press conference since taking power last month.
A 10 percent cut to a regional business tax known as IRAP
will also be made and will be funded by an increase in levies on
financial instruments to 26 percent from 20 percent previously,
with the exception of income from government bonds that are
popular with Italian savers.