* Italy to axe measure that hurt infrastructure groups
* Government to compensate by cutting deductions over fund
(Recasts, adds details)
ROME, July 12 Italy's budget will be modified to
remove a 1 percent ceiling set on the amortisation of certain
infrastructure assets, the government said, in a move that
boosts companies such as toll road operator Atlantia .
The initial plan to allow only 1 percent of an asset's cost
would have raised the tax bill for companies since it would have
prolonged the period over which they would have had to deduct
the cost of motorway assets.
The government will compensate for the lack of savings by
cutting the options for tax deductions related to a so-called
"clean-up fund" that infrastructure groups pay into, the head of
a Senate commission, Luigi Grillo, told Reuters.
Prime Minister Silvio Berlusconi's government backtracked on
the amortisation ceiling plan -- which sent shares of Atlantia
to a 13-month low -- after an outcry from infrastructure groups,
which said it would hamper investments in the country.
(Reporting by Giuseppe Fonte and Stefano Bernabei; Editing by