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Sardinian yacht tax challenged in court

Nicholas Neveling, Accountancy Age, 01 Aug 2007

Italian government challenges tax introduced by Sardinia's governor on constitutional grounds

The Italian government, led by Romano Prodi, has challenged a tax on yachts introduced by Sardinia's governor Renato Soru.

Soru, the billionaire founder of Tiscali and now regional politician, made the decision to tax rich visitors who visit Sardinia on yachts or own holiday villas, the Independent reports.

Prodi, however, has opposed the tax because he argues that it is unconstitutional and discriminatory, and could encourage other regions to raise revenue locally and clash with the plans of central government.

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