Italy Still Discussing VAT Reduction to Help Virus-Hit Economy

The Italian government hasn’t decided whether it will cut the country’s value-added tax rate and is studying different options, Prime Minister Giuseppe Conte told Parliament Wednesday.

European governments have been offering VAT relief to help stimulate economic growth as businesses emerge from the pandemic shutdown. Earlier in the week German lawmakers approved a temporary VAT cut as part of a Covid-19 relief package.

• One of the government’s main policy goals is to increase electronic payments, such as debit and credit card transactions, as a way to reduce tax evasion, Conte said. And it could make sense to “put ...