MNI BRIEF: Italy To Tax Banks, Insurers; Cut Spending By 5%
MNI (LONDON) - Rome has announced an “extraordinary” tax on banks and insurance companies along with a 5% cut on state administration costs to keep the budget in line with the 3.3% deficit for 2025, Finance minister Giancarlo Giorgetti announced Wednesday.
The 2025 budget will confirm tax cuts on salaries through the fiscal wedge that will be extended to those earning from EUR 35,000 to 40,000 per year and will become structural and “not a one off” as cuts are maintained in the medium term plan, he added.
Contribution from banks will amount to EUR 3.5 billion and would come from deferred tax assets, with an additional EUR 1 billion coming from insurance companies. Giorgetti also announced a deal with the European Commission for a7 years adjustment plan within the new European Fiscal rules. (see MNI: Italy Aims To Fill 6-8Bln Fiscal Gap By Next Week-Sources )