The Budget Law 2025

Decontribution to the South, web tax, IRES and rebates: rush of final adjustments to the manoeuvre. Opposition writes to Fontana

Budget law. Reduced funding for the Mezzogiorno, digital tax limited to large companies. Cap on deductions for education expenses raised from 800 to 1,000 euro, only a postponement to 2026 for the turnover of researchers and police forces

by Marco Mobili and Gianni Trovati

Giorgia Meloni. REUTERS/Ciro De Luca

4' min read

4' min read

Yet another day of waiting in the Budget Committee in the House ended late Saturday evening with the arrival of a new package of amendments by the rapporteurs that bring together the long list of changes initially prepared as government amendments. The new form serves to avoid two obligations: to prepare the technical reports for the amendments, and to give the groups time to submit any sub-amendments.

Beyond the technicalities, the move is, in short, a clear sign of the weariness experienced by the budget law in its first parliamentary steps, now expected to accelerate from Monday morning at 10.30 am: at that point a non-stop in committee will aim to bring the text to the Chamber by Tuesday morning, before Prime Minister Giorgia Meloni's afternoon speech on the European Council. In any case, between the general debate and the question of confidence, the text will not be dismissed from Montecitorio before Thursday evening-Friday morning.

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The long stalemate, together with the appearance of the changes on ministers' salaries, motorway concessions and electricity distribution and MPs' non-EU consultations (the anti-Renzi rule), has raised tensions between majority and opposition, thus raising some further uncertainties even on the race planned for the coming days.

All the oppositions, apart from Azione, wrote a letter to House Speaker Lorenzo Fontana asking him to assess the inadmissibility of an amendment to the manoeuvre presented in the Budget Committee. "It appears evident," reads the missive from the group leaders of the PD, M5s, Iv and Avs in the committee, "how the extremely heterogeneous structure of the amendment significantly compromises the possibility for deputies to express a free and conscious choice on the legislative will. The oppositions point out that the content of this amendment, in combination with two others by the government "with equally heterogeneous content", "substantially rewrite a good part of the budget law, without allowing a full legislative inquiry to be carried out" according to the regulation.

On the substantive level, the main changes contained in the drafts of the new set of correctives include the intervention on decontribution in the South, which reduces the resources made available to companies in the South, and the reversal on the Web Tax and bit coins. The digital tax goes back to focusing only on large companies because the hypothesis of cancelling the minimum turnover threshold of 750 million in revenues is shelved, which goes back to applying to both companies operating in Italy and those with operations abroad. The squeeze on crypto assets is also loosened: the maxi-increase to 42 per cent of the substitute tax for 2025 disappears and remains at 26 per cent, while in 2026 the levy will only rise to 33 per cent.

In the new texts, the bonus IRES for companies that keep 80 per cent of their profits in the company and reinvest 30 per cent of these in transition 4.0 and 5.0 (see Il Sole 24 Ore on newsstands or in digital format) finally makes its appearance. In the version drawn up by the government, the 4 percentage point cut remains limited to the year 2025 only, as anticipated in this newspaper, unlike the proposal presented by Azione (Bonetti, Benzoni), which introduced it in a structural manner with corresponding spending cuts.

Among the new developments also the expenditure ceiling set at 2.2 billion for Transition 4.0 and the introduction of the so-called tap: once the resources have been used up, the benefit will stop to avoid new ultra-billion-dollar overruns such as those recorded in recent months by the Mef. For businesses, also to be recorded is the 600 million increase in the dowry for the Single Zones and the new discipline for the agricultural Zones.

In addition, the area of changes to the turnover limits is still open. For the police force and researchers the 75% cut, i.e. the rule that allows only three quarters of the savings produced by the previous year's terminations to be allocated to new hirings, is only postponed from 2025 to 2026. In the drafts circulated yesterday, the abrogation of the limits on local authority turnover does not appear, but this could be decided with the approval of a parliamentary amendment, translating into fact the availability on the point filtered in recent days also by the Ministry of the Economy.

Adjustments are also coming on the tax deduction front. Expenses for start-ups and innovative SMEs, accruals for insurance premiums (death, permanent disability and catastrophic events for housing) and building bonuses for the renovation of the main home, limited to this year's expenses, are no longer included in the ceiling for the use of discounts. In addition, the limit on deductions for educational expenses rises from EUR 800 to EUR 1,000.

For families in difficulty with Isee up to 15,000 euro, the government allocates 30 million to finance sports and recreational activities for children aged 6 to 14. Refinanced with EUR 10 million for the year 2025 and EUR 20 million for 2026, the fund for incolpevoli delinquency. For the scrapping of refrigerators, stoves and washing machines replaced with new class B energy-efficient appliances, a 30% discount is granted up to a maximum of EUR 100, rising to EUR 200 when the Isee does not exceed EUR 25,000.

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