Italy raises bank tax to ease burden on middle incomes

The Italian government, led by Prime Minister Giorgia Meloni, has unveiled a new budget that increases tax rates for banks and insurers. The tax rate for banks will rise from 27.5 percent to 30.5 percent, while insurers will see their rate climb to 27 percent. Additionally, energy companies and the gambling sector will contribute an extra 700 million euros each, collectively generating over 5 billion euros in revenue to support middle-income tax relief measures.

These funds are part of a 26 billion euro package designed to reduce the tax burden on workers and the self-employed, including permanently lowering road taxes. While the country's budget deficit is projected to reach 3.4 percent, exceeding the European Union's 3 percent limit, the government is utilizing exemptions for defense and climate spending to justify the figures. This budget is the final one before the next parliamentary elections scheduled for 2027.