Italy raises taxes on banks to ease the burden on middle-income earners

The Italian government, led by Giorgia Meloni, has announced a tax increase for banks and insurers in its latest budget. The bank tax will rise from 27.5% to 30.5%, while insurers will see a 3 percentage point increase to 27%. This tax hike is expected to generate over 5 billion euros. Additionally, energy companies and the gambling sector will each contribute an extra 700 million euros to support tax relief for middle-income earners. The government plans to lower taxes for these earners and invest 26 billion euros in related initiatives, which will increase the budget deficit to 3.4%, exceeding the EU limit. This budget marks the last for Meloni's government before the 2027 elections.