On December 4th, 2011 the Council of Ministers passed the decree so-called “Save Italy” whose main measures are:
– pensions, with the extension of the contributive criterium to all employees, the increase of the old-age retirement pension for women of the private sector (from 2012 they will retire at age of 63), the cancellation of the so called “Finestre” system (and absorption of these periods into the effective retirement age), the contributive rates increase for self-employed workers, the stoppage of revaluations for pension allowance over Euro 635; all these measure will be effective from January 2012;
– VAT rate increase that goes to 23% and 11% from September 2012;
– total deductibility of IRAP on labor costs, income tax and corporate income tax purposes.