Italian Prime Minister Matteo Renzi has tod a party assembly outside Milan that he will abolish a much-hated property levy next year and make further tax cuts in the future, including cuts to corporate taxes from 2017 and taxes on personal income and pensions from 2018.

Renzi said he would remove a tax on primary residences from 2016 and while he did not say how much this would cost, he said his changes would not upset public finances. Past estimates put annual revenue from the property levy at €4bn.

Renzi said: “My commitment here before you is to work for five years to make tax cuts that have no precedent in the history of this country, and we can do it without raising the debt for our children.”

During his speech, Renzi said his Democratic Party must “change its identity” and become known as a party that eliminates taxes. Removing the levy would be popular, as more than 80% of Italians own their homes.