[Italy] Budget brings middle-class tax relief

In Italy, the latest budget is intended to relieve the financial burden of middle-class taxpayers, allowing Prime Minister Giorgia Meloni to keep her promise to voters, The Global Economics reports.

The cost of fulfilling it will be €9 billion ($10.5 billion) over three years.

The government will reportedly reduce the tax rate from 35 per cent to 33 per cent for people earning between €28,001 and €50,000, a promise made during Ms Meloni’s election campaign, the Italian Treasury said. 

Since taking office in 2022, the prime minister has consistently implemented measures to soften the impact of taxation on low earners and simplify the tax system.

Italy’s Finance Minister Giancarlo Giorgetti stated that the tax cuts will be implemented amid strong economic uncertainty, while the government works to support purchasing power and maintain fiscal responsibility.

The other two tax brackets - 23 per cent for incomes up to €28,000 and 43 per cent for salaries above €50,000 - will remain the same.

Now Italy reportedly faces the challenge of making the tax changes sustainable, since sluggish economic growth is estimated at 0.5 per cent and the national debt exceeds 130 per cent of the gross domestic product. 

Source: The Global Economics

In Italy, the latest budget is intended to relieve the financial burden of middle-class taxpayers, allowing Prime Minister Giorgia Meloni to keep her promise to voters, The Global Economics reports.

The cost of fulfilling it will be €9 billion ($10.5 billion) over three years.

The government will reportedly reduce the tax rate from 35 per cent to 33 per cent for people earning between €28,001 and €50,000, a promise made during Ms Meloni’s election campaign, the Italian Treasury said. 

Since taking office in 2022, the prime minister has consistently implemented measures to soften the impact of taxation on low earners and simplify the tax system.

Italy’s Finance Minister Giancarlo Giorgetti stated that the tax cuts will be implemented amid strong economic uncertainty, while the government works to support purchasing power and maintain fiscal responsibility.

The other two tax brackets - 23 per cent for incomes up to €28,000 and 43 per cent for salaries above €50,000 - will remain the same.

Now Italy reportedly faces the challenge of making the tax changes sustainable, since sluggish economic growth is estimated at 0.5 per cent and the national debt exceeds 130 per cent of the gross domestic product. 

Source: The Global Economics