* Thousands demonstrate, call for lower taxes for workers
* Absence of hardline CGIL shows growing rift among unions
By Catherine Hornby
ROME, Oct 9 (Reuters) - Thousands of Italian workers and pensioners demonstrated in Rome on Saturday in a protest organised by two of Italy's largest unions to urge an overhaul of the tax system aimed at boosting economic growth.
Unions across Europe have staged a series of strikes, rallies and other forms of action against austerity measures that have hit many workers, particularly in the public sector.
The CISL and UIL, respectively the second- and third-largest Italian unions, are pressing for a series of measures to cut taxes for workers, pensioners, families and companies, fight tax fraud and raise rates on investment income.
"We need to have our money back, the money we pay in taxes, and we pay lots of taxes," said union member and pensioner Emilio Baratto, ringed by protesters waving flags and balloons.
Italy's largest and more hardline union CGIL did not take part as expected, due to a growing rift between unions centred around their different approaches to car maker Fiat's efforts to boost productivity at its Italian plants.
Smoke bombs, eggs and paint were thrown at the headquarters of the more moderate CISL union earlier this week, reflecting rising anger and frustration at their willingness to agree to the labour shake-up and cooperate with employers' groups.
The CISL and UIL have supported moves by employers such as Fiat for deals to reform labour contracts and their engineering sector arms recently agreed to introduce waivers in contracts to increase flexibility.
They have strongly criticised the CGIL, which has taken a tougher stand and whose member unions are expected to stage separate protests in coming weeks.
"The movement calling for more responsibility in our country is really strong," said CISL leader Raffaele Bonanni during a speech to the crowds on Saturday. "This is a slap in the face to those who want to turn back to the old slogans of the past."
Reflecting Italy's comparatively smooth passage through the financial crisis and the absence of the kind of drastic budget cuts seen in countries such as Greece or Spain, most Italian unions have been relatively quiet so far.
Italy's 25 billion euro ($2 billion) austerity plan includes delaying retirement dates by three to six months, a freeze on state salaries and pay cuts for high public service earners.
The package has drawn complaints that it favours the rich at the expense of workers and has sparked protests, mainly by CGIL.
In recent days, Italian students and teachers have marched in the streets to protest against reforms, reflecting widespread disillusion at public spending cuts, unemployment and the declining popularity of the government.
(Additional reporting by Fabio Severo and Gabriele Pileri; Editing by Mark Heinrich)