Italy has no plans for new tax on company profits, sources say
2024.08.02 13:03
ROME (Reuters) – Italy has no plans to introduce new windfall taxes on company profits, government sources said on Friday, denying press reports.
Some Italian newspapers reported this week that the government was discussing new taxes on banks, insurers, energy companies and luxury goods firms.
Rumours began to spread after Economy Minister Giancarlo Giorgetti last month hinted at possible measures on the insurance sector, urging companies that have reported healthy profits to reflect on a recent rise in insurance premiums.
Political sources said, however, that Giorgetti would be in favour of cooperation agreements with banks and insurers to reinvest some of their profits in initiatives aimed at helping consumers.
A year ago Italy’s conservative government sparked a major sell-off in banking shares by announcing a surprise 40% windfall tax on bank profits driven by higher interest rates.
The government later backtracked and gave lenders the option of increasing reserve buffers instead of paying the levy – resulting in virtually no money being raised from the windfall tax.
($1 = 0.9163 euros)
