Italian road operators express concern about proposed tax measure
30/10/2019 19:14
ROME, Oct 30 (Reuters) - Italian toll road operators have
warned that a measure in this year's budget that would limit tax
deductions that can be claimed against amortisation costs for
infrastructure assets could slow investment and lead to a
possible legal challenge.
Under the new rule, motorway operators would only be able to
deduct up to 1% of the value of investments on infrastructure
projects like new toll roads booked on their balance sheets. At
present, each year they can deduct the full amount of the value
of the depreciation booked on the balance sheet.
"If the new rule in the budget law is approved, it would be
impossible over the term of the concession period for motorway
concession holders to deduct the costs sustained in developing
infrastructure that will be handed over to the state for free at
the end of the concession period," the operators lobby AISCAT
said in a statement.
The measure is included in the 2020 budget law which has
been passed by the government but which still needs
parliamentary approval.
The industry lobby said it considers the new rule could
breach the Italian constitution, paving the way for future legal
actions against the government.
Finance Minister Roberto Gualtieri denied the measure was
aimed at punishing operators, who have been under increased
scrutiny since the deadly collapse last year of a bridge managed
by Atlantia ATL.MI . "It's an absolutely sustainable
adjustment, this isn't a dramatic issue," he said.
(Reporting by Stefano Bernabei; Editing by Kirsten Donovan)
((stefano.bernabei@thomsonreuters.com; +39 06 85224354;))