Italy dropped Monday a proposal for a levy on high earners approved by the cabinet earlier this month as part of an austerity package aimed at calming the markets by balancing the budget before 2013.
The "solidarity tax" had proved highly controversial within Prime Minister Silvio Berlusconi's centre-right coalition. The government said it would instead step up measures to fight tax evasion in order to raise revenues.
The "solidarity tax" had proved highly controversial within Prime Minister Silvio Berlusconi's centre-right coalition. The government said it would instead step up measures to fight tax evasion in order to raise revenues.