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tipping in Italy

OK so as I currently "get it" the "service included" at 10 or 15% is actually called a "tax" or as we say a "jacking up the price" ploy. This apparently has replaced the "bread and service" charge which was largely outlawed. Italians do not tip (or not much - a couple Euros maybe). The service included fee seems to be kinda like a marketing ploy to dupe the patron. That is, the price of the dish is lower than say on the next street, on the surface anyway, but they make up for it with the service charge in the fine print. Correct? Way off base? Thoughts please.

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OK Ed I missed by a mile but what does that mean and how? Looking for guidance here for myself and others that read the post.