Extrafiscality in the Tax Reform

Strict Essentiality and the End of the Promotional Function of Tax Law

Abstract

The article demonstrates that the recent tax reform on consumption taxation, by altering the constitutional tax system, has largely subverted the foundations of extrafiscality. This subversion stems from three main reasons: firstly, by prohibiting the granting of tax benefits; secondly, by using the selective tax only for sanctioning purposes, and, thirdly, by creating a rigid essentiality.