ROME, Oct 15 (Reuters) - Prime Minister Matteo Renzi’s cabinet has approved a tax-cutting budget for 2016, a government source said on Thursday. The package will now go before parliament, where it must be approved by the end of the year.
Renzi has said the budget will abolish a tax on primary residences, scrap levies on agricultural and industrial equipment and also reduce the main corporate tax IRES, at a cost of at least 5 billion euros ($5.7 billion) to the state.
It aims to keep Italy’s budget deficit inside European Union limits but slows the pace of fiscal consolidation previously agreed with the European Commission.
Reporting by Antonella Cinelli, writing by Gavin Jones; Editing by Crispian Balmer