Italy's property taxes 'risk rising' after IMU scrapped

(ANSA) - Rome, October 29 - Property taxes in Italy risk being higher next year even though Premier Enrico Letta's government has scrapped the unpopular IMU tax on people's primary residences, the Audit Court said Tuesday. Letta's grand-coalition government agreed to roll back the IMU after threats from Silvio Berlusconi's centre-right People of Freedom (PdL) to sink the government if it did not respect the key pledge the ex-premier made in the run-up to February's inconclusive general election. But there are fears that a series of new taxes that will replace IMU to finance local services, some of which will be paid by people renting property and not just home owners, will end up costing more than IMU did. The Audit Court said the government's 2014 budget law, which gives local authorities more power in setting the tax rates, carried the risk of "further tax increases", especially on homes. It added that people who had two properties or more were especially at risk.