Renzi's government raises ceiling for cash transactions

€3,000 in cash instead of €1,000 now permitted for payments.

The ceiling for cash payments for goods and services is to be raised from the present €1,000 to €3,000.

Strict limits on cash payments were introduced by the Monti government in December 2011 to discourage tax evasion – principally on IVA, the 22 per cent sales tax – and on money laundering.

The Renzi government claims that the new ceiling will promote consumption. Critics reply it will once again encourage IVA dodging.