The Italian government has approved an increase in the annual flat income tax on the newly arrived rich. This tax will increase from 100.000 to 200.000 euros. The decision came after the tax rate, known as the "billionaires tax" or "footballer scheme", was unpopular with local residents. Thousands of multimillionaires came to Italy with him.

Among the people who benefited from this tax arrangement was soccer player Cristiano Ronaldo, who moved to Turin in 2018, Klix.ba reports.

Namely, the newly arrived rich are exempt from income tax earned abroad, gift and inheritance tax for 15 years. When the aforementioned tax arrangement was introduced in 2017, Italian authorities hoped it would attract the wealthy to spend their money in Italy. But after the government approved an increase in the annual flat tax, Economy Minister Giancarlo Giorgetti said yesterday that Italy was now opposed to the idea of ​​competing with other countries to attract the super-rich by offering "fiscal services".

The tax "race to the bottom" between countries is a phenomenon, which, as reported by Euronews, is particularly discouraged by major organizations such as the Organization for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF). Although countries can benefit from the presence of the wealthy and corporations, excessive tax breaks for them can increase inequality and threaten public services. The growth of the annual flat income tax of the newly arrived rich will be one of the measures to solve the problem with the Italian budget deficit.