Energy, tax, pensions and work. What the government decided
All the details of the decree approved by the government on energy, taxation, pensions and work
Fifteen billion euros for interventions in favor of families and businesses and another two billion for additional measures (health care and petrol discount extension) which bring the dowry of the new Aid decree to 17 billion. Almost 3 more than the resources initially foreseen, and without budget variance, underlined the Prime Minister Mario Draghi in a press conference after the approval of the decree in the council of ministers.
A package of interventions that favors families over businesses, underlined the Minister of Economy Daniele Franco, and which in addition to the support for the payment of bills also includes 25 million for the psychologists bonus, the advance of the revaluation of pensions, the strengthening up to 2% of the tax wedge cut and 200 million for farmers damaged by the effects of drought.
Let's now see in detail the approved measures.
THE SUMMARY AND THE NUMBERS
The Council of Ministers approved the Aid bis decree which provides, with a package of measures worth 17 billion, interventions in favor of families and businesses. In particular, against the increases in bills and fuel, the provision allocates 8.4 billion euros by extending the discounts provided for by the previous decrees that are due to expire. For businesses, on the other hand, the return of the tax credit is expected. The cut (to 2%) of the tax wedge for incomes up to 35 thousand euros is growing and the revaluation of pensions arrives. Those who have not paid on extra profits are under fire.
THE WORDS OF DRAGONS
Draghi: «They are measures with unchanged balances, without deviation because the economy is doing better than expected. The growth acquired for 2022, equal to 3.4%, is a very positive figure both compared to the recent past and compared to other countries. We will grow this year more than France, Germany and the USA, but inflation, energy price increases and also political uncertainty and geopolitics are worrying ”. And on the PNRR he adds: "I want to leave all the objectives for this year to the next government".
WHAT THE GOVERNMENT HAS DECIDED
The Council of Ministers yesterday approved a decree-law that introduces urgent measures in the fields of energy, water emergency, social and industrial policies.
The decree-law intervenes in some important areas, including the fight against expensive energy and fuels and the water emergency, support for local authorities, the strengthening of social policies to protect purchasing power, and the relaunch of investments.
As for the increases in the electricity, natural gas and fuel sectors, the decree intervenes first of all by strengthening the electricity and gas social bonus for the fourth quarter of 2022, protecting vulnerable customers in the gas sector, suspending unilateral changes to the supply of electricity and gas, reads a note from Palazzo Chigi.
Secondly, the decree eliminates general system charges in the electricity sector also for the fourth quarter of 2022 and reduces the VAT for the administration of natural gas for combustion for civil and industrial uses in the months of October, November and December 2022. Furthermore, , again for the fourth quarter of 2022, ARERA will ensure that the general system charges in the gas sector in effect in the third quarter remain unchanged.
Finally, the tax credits in favor of companies are extended also for the third quarter of 2022 and the extension of the reduction of the excise duty on fuels is arranged until 20 September 2022.
As for the water emergency, "resources are allocated in favor of agricultural enterprises hit by drought, the assignments of the integrated water service are accelerated (providing specific terms for the governing bodies of the area that have not yet provided for the assignment and activation of specific replacement powers in the event of inaction) and the Civil Protection is allowed to request a state of emergency in the event of drought ”, is written in the press release of the Prime Minister.
The decree also allocates resources to local authorities, "in the form of extraordinary contributions for a total of 400 million euros in favor of municipalities, metropolitan cities and provinces, and provides for the extension to 2023 of the suspension of the repayment of liquidity advances in favor of Regions following the 2016 earthquake. Resources are also allocated to promote the post-earthquake reconstruction of 2012 in Emilia-Romagna, Lombardy and Veneto ”.
As for social policies, Palazzo Chigi explains that “the tax wedge is reduced in favor of employees for the pay periods from 1 July to 31 December 2022, including the thirteenth. The advance to 1 October 2022 of the revaluation of pensions, the extension of the "200 euro bonus" to workers currently not covered and the refinancing of 100 million euro in 2022 of the Fund for the support of purchasing power are also foreseen. of self-employed workers ".
As for investments, rules are introduced in favor of companies operating in strategic sectors or sectors of public interest (Alitalia, ILVA, 3-I). Furthermore, the Fund for the start-up, by 31 December 2022, of non-deferrable works is refinanced for a total of 1.3 billion euros in order to counter the cost of materials in relation to both the works that fall under the Complementary Plan to the National Recovery and Resilience, both to the works relating to the Milan-Cortina 2026 Olympics. Development Contracts are refinanced, also in relation to environmental protection projects, and the Important Projects of Common European Interest-IPCEI, as well as the Single National Tourism Fund.
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HERE ARE THE SHEETS ON 4 SINGLE MEASURES
AID TO COMPANIES AGAINST EXPENSIVE ENERGY
One of the most important items in financial terms of the decree is the extraordinary contribution, in the form of a tax credit, to companies for the purchase of electricity and natural gas. In total, the allocation to lend a hand to production activities to cope with rising bill prices is in fact worth € 3.3 billion. In the chapter of the Aid bis decree dedicated to businesses, the government has also included the law on the former Ilva, with urgent measures to support the steel industry. Invitalia is thus authorized to subscribe to capital increases or various instruments, suitable for strengthening the former Ilva's capital, also in the form of shareholder loans for capital increases for amounts up to 1 billion euros. On the other hand, a chapter of expenditure is reserved for companies and agricultural activities damaged by drought with an ad hoc fund of 200 million. The decree also includes an increase of approximately 30 million in the single national tourism fund. A measure is taken over by the old Alitalia, establishing that the proceeds of the liquidation will be calculated net of the costs of extraordinary administration and reimbursements to travelers. Through the rule on the "Complementary Fund price revision" to counter the rise in the price of raw materials and not block tenders, another billion and 300 million comes.
REVALUATION OF PENSIONS
Aid to families to cope with the price rush includes the choice of bringing forward the revaluation of pensions to 2%, triggering the adjustment starting in October. Compared to what was indicated on the eve of the Council of Ministers, the number of beneficiaries of the advance of the revaluation changes. The 2% increase in the allowance is "recognized if the monthly pension is equal to or less than the total amount of € 2,692". In the last quarter, the revaluation of 2% of pensions is foreseen only up to the threshold of 35 thousand euros. The introduction of a cap allows the government to reduce the budget allocated to the measure, which is now worth about 1.5 billion, instead of 2.38 billion as indicated in the draft of the decree two days ago. The package of measures for families provides for the extension of the € 200 bonus to employees who have not benefited from it because "affected by events figuratively covered by INPS, such as maternity, sickness or layoffs". The bonus is also extended to sports workers. The measure launched yesterday also allocates 100 million euros to refinance the Fund to support the purchasing power of self-employed workers.
DISCOUNTS ON BILLS AND EXCISE CUT
The decree confirms the package of measures that over the last few months has helped to mitigate the increases in the prices of energy goods for families and businesses. Economy Minister Franco explained that these are interventions equal to about 5.5 billion euros for the sector of productive activities and about 5.8 billion of funds to be allocated to families. The Aid bis decree therefore provides for discounts on gas and electricity bills thanks to the extension in the fourth quarter of the elimination of system charges in the electricity sector (1.1 billion), the cut in system charges on gas (2 , 6 billion) and the 5% VAT reduction on methane. A rule establishes the strengthening of the social bonus for energy and gas intended for economically disadvantaged domestic customers and for domestic customers in serious health conditions. An extension of the cut in excise duties on fuels is coming. The pump discount set to end on August 21 is extended to beyond mid-September. "With a commitment of 700 million – explains Franco – we have extended the reduction of € 0.25 in excise duties to September 20". In the field of energy, the taxation on the extra-profits of energy companies is extended to June 2023.
THE CUT OF TAXES
Compared to the eve of the Council of Ministers, the cut in the tax wedge widens by 1.2 points for incomes up to 35 thousand euros and starts retroactively from July. The intervention decided by the government introduces a deduction of more than a percentage point, assumed up to a few hours before the approval of the decree, which thus adds to the 0.8% exemption set by the 2022 Budget law for public employees and private. The total cut thus rises to 2% for the pay periods from 1 July 2022 to 31 December 2022, including the thirteenth, the exemption on social security contributions for disability, old age and dependent survivors. "The cut of the tax wedge has a burden on the net public finance of 1.2 billion," indicated the owner of the Economy Franco. Who, illustrating the details of the decree at a press conference, focused on doubling the tax-free threshold for corporate fringe benefits. "The ceiling for corporate welfare, for food shopping bonuses, telephone top-ups and other consumer goods exempted from the tax base is increased from 258 to 516 euros and the sums for the payment of water service utilities, electricity and natural gas ».
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/decreto-aiuti-bis-energia-fisco-pensioni-lavoro/ on Fri, 05 Aug 2022 05:07:13 +0000.