March 24, 2009

Sardinia leader plans to repeal luxury tax

The new governor of Sardinia, Italy, said Tuesday he will repeal a luxury tax plan that has targeted millionaires who use the island as a vacation spot.

ANSA reported Tuesday that Gov. Ugo Cappellacci plans to remove levies on super-yachts and private planes.

The luxury tax was introduced in 2006 by Cappellacci's predecessor, Renato Soru, who was defeated last month. He had argued the added tax revenue would help bolster the lagging local economy and help preserve the island's natural resources.

Under the plan, taxes were charged on yachts that moored at any of the island's ports and private planes that landed in Sardinia, the Italian news service reported.

Cappellacci said Monday he was also planning to loosen restrictions on construction along Sardinia's coastline if environmental guarantees can be made.

"It's time to put an end to this cliche about some people wanting to cover the coast with cement and others wanting to protect the natural beauty -- it's a Taliban vision of environmental policy,'' he was quoted by the news service as saying.