Economic and financial section > Brussels Financial Conference 1920 : the recommendations and their application : a review after two years. Vol. 2, Italy

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Not only does the financial situation show a gradual improvement, but in addition to the
heavy increase in taxation, a remarkable change has also taken place in the manner in which
these burdens are distributed among the various classes of taxpayers. In proof of this we give
below figures showing, in thousands of lire, the sums yielded by each group of taxes for the
financial years from 1913-14 to 1920-21 (the figures for the latter year being provisional)
excluding such minor items as revenues from crown lands, returns on public services, repayments
and recovery of expenses, receipts derived from dealings in foreign exchange, etc. The data
in the following tables refer principally to taxation; in order to show the changes which have
taken place in the incidence of taxation during the first and last year under consideration, we
give the proportional figures showing the percentage of each group of taxes as compared with
the total figure:
Years
Direct taxation
on income
Taxes on business
transactions,
concessions, etc.
Indirect taxation
n onsumption
Industrial
monopolies
Commercial
monopolies
Total
1913- I4
1914- I5
igrS-rb
1916- 17
1917- 18
1918- 19
1919- 20
1920- 21
Percent.
I913-i4
1920-21
540,689
592,448
720,878
i,o57,93o
1,531,626
2,065,567
2,333,77I
3,968,362
27.0
36.9
293,931
29%>775
337,906
448,357
588,608
8i3,537
1,298,335
r,747,900
14.7
16.3
621,310
461,888
641,120
922,183
970,470
1,033,466
1,204,912
1,490,247
31.0
13-9
547T20
573,273
700,529
845,996
1,129,575
1,521,087
2,007,805
3,013,484
27-3
28.0
452,550
521,892
4-9
2,003,050
1,926,384
2,400,433
3,274,466
3,220,279
5,433,657
7,297,373
10,741,885
100.0
100.0
Between the last pre-war financial year and the year 1920-21 the yield from these taxes has
increased fivefold, but also the proportion between the various groups of revenue has greatly
changed. The yield from direct taxation on income in particular has increased from 27 % to
37 %, while that from indirect taxes on consumption has fallen from 31 % to 14 %; these changes
are evidence of the fact that the Italian system of taxation has assumed a more democratic
character. It must also be pointed out that new taxes on business transactions include several
stamp duties which are no longer based as formerly on the principle of being special payments
for State services rendered to the payer of the tax, but are really luxury taxes (taxes on jewellery,
perfumery, bottled wines and liqueurs and other luxuries, tickets for cinematographs and other
entertainments, etc.) Some sources of revenue which of late years were included under direct
taxation, are of a temporary nature (excess profits duties), but they will be superceded by other
large sources of revenue, chiefly by means of a general reform of the income tax.
In spite of the exceptional economic crisis from which the country is suffering so greatly, the
yield of taxation during the last few months has shown an upward tendency which augurs
well for the restoration of the State finances.
We give below, in thousands of lire, figures showing the yield of the various taxes during
the first nine months of the financial year 1921-22 as compared with the first nine months of the
year 1920-21, and also the estimates for the whole of the financial year 1921-22: