Soccer-Italy scraps plans to extend tax breaks for clubs' foreign signings
29/12/2023 09:20
MILAN, Dec 29 (Reuters) - Italy's government late on
Thursday dropped a draft proposal that would have extended until
the end of February tax breaks of up to 50% on the wages of
sport clubs' new signings from abroad, drawing criticism from
the country's top soccer league.
The measure, which is now due to expire on Dec. 31, has been
in place since early 2020 and was especially tailored to Italy's
Serie A top-flight soccer league.
Its phasing out means Italian clubs will not be able to rely
on the tax breaks for foreign signings they make during the
coming January transfer window.
Serie A, which had lobbied for an extension of the benefit,
said the government's decision would be counterproductive.
"Failing to extend (the measure) ... will in fact make the
teams less competitive, resulting in a drop in revenues, fewer
resources to be allocated to young players' academies, reduced
industry volumes and therefore less revenue for the (country's)
inland revenue," it said in a statement.
Players' salaries are the most important cost in the
balance sheets of Serie A clubs, and backers of the incentives
said they helped Italian teams attract top foreign talent and
compete with richer peers like England's Premier League.
Lazio LAZI.MI chair Claudio Lotito, who is also a senator
for the co-ruling Forza Italia party, lobbied for the tax breaks
to be maintained, but was rebuffed by government coalition
partners, including the League.
"Discounts to foreign footballers earning millions are
immoral, clubs should invest in young Italian players and not
overpay foreigners who are also often bad (players)," League
lawmaker Luca Toccalini said in a statement.
(Reporting by Federico Maccioni and Elvira Pollina
Editing by Alvise Armellini and Mark Potter)
((Federico.maccioni@thomsonreuters.com; +39 3420768883;))