Business · Companies · 7 hrs ago
Italy plans higher taxes on banks, insurers and financial transactions
Italy’s government plans structural tax increases for banks and insurers as part of its budget measures.
The measures are expected to bring in an additional €5 billion from those sectors.
Banks’ IRES tax rate is set to rise from 27.5% to 30.5%, while insurers’ rate would increase from 24% to 27%.
The financial transaction tax will rise from 0.2% to 0.6%, applying to the wider financial sector and investors.
Energy companies are also expected to pay €700 million more through an increase in IRAP, a regional tax.
The government says the measures will not affect banks’ regulatory capital, while industry leaders have objected to the added tax burden.
The full impact remains to be calculated as officials await the final legal texts and institutions assess what they will owe.
Italy’s government plans structural tax increases expected to raise an additional €5 billion from banks and insurers.
The plan would raise corporate income tax rates for banks and insurers by 3 percentage points.
The financial transaction tax, known as the Tobin tax, would rise from 0.2% to 0.6%.
The government also plans an increase in the regional tax on productive activities for the energy sector, which is expected to pay €700 million.
Insurance industry representatives objected, while the governing League party defended the measures by citing expected sector profits of €50 billion this year.
- Who
- Italy’s government is raising taxes on banks, insurers and financial transactions.
- What
- The plan includes higher corporate income and regional taxes, and a higher financial transaction tax.
- When
- The government announced the measures in 2026. The transaction tax increase applies this year.
- Where
- Italy.
- Why
- The government is seeking additional contributions from financial firms and investors; the League cited expected sector profits of €50 billion this year.
Italy’s government and governing League
Banks and insurance industry
Purpose of the measures
Italy’s government and governing League
The government says the measures will raise contributions from financial firms and investors; the League cited expected profits of €50 billion this year.
Banks and insurance industry
Insurance industry representatives say insurers should not be treated as a source of short-term tax revenue.
Impact on firms
Italy’s government and governing League
The government says the measures do not affect banks’ regulatory capital.
Banks and insurance industry
Bank leaders have previously voiced opposition to burdensome measures; insurers’ association president warned against exploiting the sector for short-term revenue.
A three-year agreement envisaged €10 billion in additional contributions from banks.
The government plans to raise the financial transaction tax from 0.2% to 0.6%.
Ania president Giovanni Liverani argued against using insurers as a source of short-term tax revenue.
- Banks’ additional contribution
- €5 billion, shared with insurers
- Bank corporate income tax
- 27.5% to 30.5%
- Insurer corporate income tax
- 24% to 27%
- Financial transaction tax
- 0.2% to 0.6%
- Energy sector contribution
- €700 million
- League’s stated expected sector profits
- €50 billion this year
2 sources
What people are saying
We are not a tax deposit to be exploited for short-term cash-flow needs. On the contrary, we are guardians of Italians’ savings and of a significant part of the public debt.
this year it expects profits of 50 billion euros