Italian holiday island to scrap tax on mega rich

The new governor of the sun-swept Italian island of Sardinia is repealing a tax on the mega rich that will benefit, among others, jet setters like billionaire Prime Minister Silvio Berlusconi.

The new governor of the sun-swept Italian island of Sardinia is repealing a tax on the mega rich that will benefit, among others, jet setters like billionaire Prime Minister Silvio Berlusconi.

paradise: Sardinia island

Governor Ugo Cappellacci, the son of Berlusconi's tax adviser, proposed a budget that repeals the tax on mooring luxury yachts and landing private aircraft on the island where the prime minister owns a holiday mansion.

The luxury taxes, which opponents said scared away the rich and hurt tourism, were introduced under the previous centre-left governor, Renato Soru, who was ousted in elections last month.

Berlusconi hand-picked Cappellacci out of virtual obscurity to run against Soru. His election victory triggered the resignation of Italy's opposition leader, Walter Veltroni.