Franco Broccardi on Italy's 2018 Budget: Taxing Art Capital Gains

Franco Broccardi, a chartered accountant specializing in cultural economics, criticizes a poorly drafted provision in Italy's 2018 budget law that proposed taxing capital gains on art sales. The provision, which has since been withdrawn, would have interpreted the sale of inherited or donated artworks as commercial activity, applying retroactively and imposing penalties. Broccardi argues that such a tax lacks coherence, as it fails to account for capital losses, import VAT rates uncompetitive internationally, and the need for a comprehensive regulatory framework. He calls for stakeholder dialogue to create fair rules that foster market growth, public enjoyment of art, and reduced bureaucracy, rather than piecemeal measures that harm a fragile but potentially booming sector.