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8/1/06

Forbes: Italy's real estate tax seen topping rest of Europe's rates - analysts

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Italy's real estate tax seen topping rest of Europe's rates - analysts

MILAN (AFX) - Italy's planned tax change on real estate transactions is likely to raise the tax rate well above the Europe average, thus reducing foreign interest in the sector, said analysts. Later today, the government is likely to propose a confidence vote on its economic package, including the real estate tax, in order to push through the package in the face of a raft of opposition amendments, they said.

'This new tax puts Italy in a bad position for international investors. They won't invest in Italy,' said one analyst, noting the presence of Morgan Stanley and Deutsche Bank in the country.

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