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Italian PM announces $17.6b in tax cuts

Published on Mar 13, 2014 4:42 AM

ROME (AFP) - New Italian Prime Minister Matteo Renzi on Wednesday announced ten billion euros (S$17.6 billion) worth of tax cuts in the first major economic announcement since he came to power last month.

Renzi said ten million people earning less than 25,000 euros a year would benefit from a move that is part of a package of measures aimed at reviving the country's flagging economy.

"For us, it is obvious that putting 1,000 extra euros (per year) in the pockets of Italians will help consumption," Mr Renzi told a press conference following a cabinet meeting that approved the broad outlines of his ambitious plan for a rapid shake-up of the way Italy is run.

He said the tax giveaway would be financed by cuts in government spending rather than higher taxes for wealthier citizens.

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