March 12, 2014 / 6:00 PM / 4 years ago

Italy PM Renzi says approved 10 bln euros in income-tax cuts

ROME, March 12 (Reuters) - 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.

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