Against a backdrop of economic contraction in Europe, but a renewed influx of Chinese tourists, Italy has decided to lower its tax-free threshold. The measure concerns all non-European tourists visiting the country.
Here’s a piece of news that should cheer Italian retailers, and luxury specialists in particular, as the year draws to a close.
At the beginning of November, the Italian government passed the budget law for next year. At stake is the possibility of allowing tourists from outside the European Union to benefit from tax-free services from a minimum expenditure of 70 euros, compared with the current threshold of 154 euros. All that remains is for the various chambers of parliament to give their final approval.
According to a representative of the ltaly China Council Foundation (ICCF), this measure should enable the transalpine economy to benefit from the financial spin-offs of Chinese tourism, which is now returning to the country.
A boost for the local economy
According to Mario Boselli, President of the ICCF, “the measure should have a positive impact on tourism as a whole , and in turn on the entire Made in Italy supply chain, and we hope that it will come into force quickly.”
He adds, “in the wake of theopening of a dedicated Chinese tourism desk at Milan’s Malpensa airport, this measure represents yet another reason for Chinese travelers to choose Italy as a destination.”
Despite the loss of VAT, the lowering of the tax-free threshold should generate over 119 million euros each year in additional funds, according to estimates quoted by the country’s leading business daily Il Sole 24, based on data from the Ministry of Tourism.
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