Tax increase in Italy produces disappointing figures

As the new tax on real estate is implemented, Mario Monti, Italian's Prime Minister, is beginning to realize that the tax increase policy has flopped. With the tax rate boost by one percentage point in September 2011, the VAT receipts have dropped significantly to its record low since the year of 2006. The respective decline could potentially reinforce Italy's decision to delay an additional tax increase by two percentage points resulting in 23% VAT.