Italy's public audit office (Corte dei conte) has recommended in its 2016 report that Italy increase its value added tax (VAT) rate in order to provide funds needed to offset the planned corporate tax cut to 24% in 2017 and individual tax cuts in 2018. The report suggests using the safeguard clause included in the 2016 budget, which would increase the VAT rate from 22% to 25% in 2017 with a further increase to 26% in 2018.
The 2016 budget safeguard clause and similar clauses in previous bud…