• Recovery, Cgia: "The need to use money quickly and well"

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  • Cgia: "The tax burden increases, it is 43.1%. The same threshold reached in 2014"

  • CGIA: 80 billion euros are needed between tax freezes and aid

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by Tiziana Di Giovannandrea

May 15, 2021 The Draghi Government is preparing to provide 18 billion in non-repayable contributions to companies and VAT numbers in economic difficulty through the new Sostegni decree. The approval of the new provision should arrive within the next week. This amount is in addition to the just over 27 billion in subsidies paid up to now to companies in difficulty, in the 14 months of the pandemic.



Faced with a collapse in the turnover of our economic system which in 2020 amounted to 350 billion euros, with the total 45 billion approved so far, only about 13 percent of the total losses would be covered. To say it is the Studies Office of the CGIA which assesses the amounts allocated as insufficient and considers them a trifle.



The alarm launched by the Association of Artisans and Small Enterprises of Mestre also concerns the fact that the budget variance of 40 billion euros was voted by Parliament on 22 April and there is the danger that the 18 billion in indemnities arrive late.



Prompt delivery of aid is decisive to give some oxygen to those in difficulty, particularly at this time, highlights the Research Department directed by Paolo Zabeo. If, in fact, in recent weeks the street protests have subsided, the state of crisis in which many economic sectors find themselves has further worsened. There are hundreds and hundreds of thousands of companies that are still completely closed or semi-closed.



According to the CGIA, however, it is clear that compared to the previous government there has been the long-awaited change of pace. Even if insufficient, the measure of support for enterprises in the process of being approved has an important economic dimension, never achieved before, assesses the Association chaired by Roberto Bottan.



Measures to save the country and restart economic growth

The CGIA also highlights how saving Italian micro and small businesses means safeguarding an important slice of the economy of our country. If it is true that further current outgoings contribute to increasing the public debt of our country, it is equally true that if we do not save businesses and jobs, we do not lay the foundations to restart economic growth, which remains the only possibility capable of reduce in the next few years the amount of public debt that we have frightfully accumulated with this crisis. The numbers developed by Italian micro and small enterprises are eloquent. Net of civil servants, businesses with fewer than 20 employees make up 98% of the companies in the country and employ the majority of Italians, that is to say 54.6% of the employed. Furthermore,these micro realities produce 37% per cent of the annual national added value, a figure not found in any other large EU country.  



Draghi and Franco have promised that the aid will arrive at least until December

The Cgia Research Office is however confident that the resources made available to companies and the people of the VAT numbers with the Sostegni bis decree will not be the last because the declarations made to the end of March by both the Prime Minister, Mario Draghi, and the Minister of Economy and Finance, Daniele Franco, were very reassuring. The Prime Minister was able to underline that this year "it is necessary to accompany businesses and workers on their way out of the pandemic, this is a year in which money is not asked for, money is given". The Minister of Economy, on the other hand, stated that "I expect to finish with the support measures for the economy towards the end of the year".



Business taxes need to be cleared

The need to cancel corporate taxes is another aspect that the CGIA brings to the attention of the Government. To prevent future subsidies from being used by businesses in large part to pay taxes, it is necessary to "impose" the zeroing of state taxes, allowing VAT numbers and small businesses to save around 28 billion euros this year. The loss of revenue of 28 billion was estimated by assuming to allow all economic activities with a turnover in 2019 of less than one million euros not to pay personal income tax, IRES and IMU on the warehouses for the current year. . These companies, which amount to about 4.9 million units (equal to about 89% of the national total), should still pay local taxes,in such a way as not to cause liquidity problems to the Mayors and Presidents of the Region. 



                                                         Non-repayable

contributions paid to companies / VAT

numbers

to date (millions of euros)


                                                          2020 2021 Total


15,081 11,958 27,039


                                                         Elaboration of the CGIA Research Office