Italy is preparing to implement increased taxes on businesses that have been profiting from positive market conditions, with the aim of spreading the economic burden more evenly across various industries. Economy Minister Giancarlo Giorgetti hinted that industries such as weapons manufacturing could be among those affected by the new tax measures. His comments triggered a drop in the Milan stock market, with the FTSE MIB index down by 1.5%, particularly hitting energy and financial sectors.
The government's plan is part of a broader strategy to finance a 2025 budget worth €25 billion, with a focus on reducing income taxes and social contributions. The budget is expected to push the deficit to 3.3% of GDP, requiring additional borrowing of around €9 billion. The remaining funds will need to be sourced through increased fiscal revenues and spending cuts.
One specific measure being considered is the removal of an excise duty discount on diesel, though the government aims to ensure that overall fuel taxation remains unchanged. Giorgetti emphasized that the upcoming budget would demand sacrifices from all sectors of the economy as Italy seeks to balance its financial commitments while navigating a challenging economic environment.
