ROME, Aug 29 (Reuters) - The Italian government will drop a proposed tax on high earners from an austerity package going through parliament and replace it with other measures, Prime Minister Silvio Berlusconi’s office said on Monday.
A statement issued after a meeting between Berlusconi and senior ministers from his coalition government made no mention of any increase in Value Added Tax, which had been widely mooted in the media.
The so-called “solidarity tax” on incomes above 90,000 euros will be replaced by new tax measures to combat tax evasion and by reduction in tax breaks for cooperatives, the statement said.
But it was vague on jthe details. (Writing by James Mackenzie; editing by Barry Moody)