ROME (Reuters) – Italy plans to raise about €4 billion ($4.4 billion) in 2025 through new tax rules for banks, insurance, and gaming licenses, according to a draft budget report.
The report, sent to the European Commission, predicts this will increase revenues by 0.168% of GDP to help strengthen public finances.
Prime Minister Giorgia Meloni stated the plan was created after positive discussions with financial leaders, emphasizing that banks are not viewed as adversaries.
Share prices of major banks and insurers in Milan, like Intesa Sanpaolo and UniCredit, remained stable, indicating minimal market concern.
Economy Minister Giancarlo Giorgetti announced that banks and insurers are expected to contribute over €3.5 billion next year, suggesting that markets have already factored this in.
His deputy, Maurizio Leo, explained that the budget will freeze tax deductions related to banks’ previous losses, temporarily increasing their tax on profits.
The Treasury anticipates collecting €1 billion from insurance companies by changing stamp duty payment terms.
Additionally, Italy will alter how stock options for managers are taxed, deferring deductions until shares are allocated.
The draft budget also forecasts a decline in revenue from banks, insurance, and gaming over the next few years.
Last year, Italy’s unexpected 40% tax on bank windfall profits failed to raise any funds, as it was later restricted and allowed banks to opt out.
($1 = €0.9190)
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