2027 Budget, Giorgetti on personal income tax: a choice between selective and blanket measures
The Minister for the Economy is in Bangkok for the IMF meetings: I can confirm that a contribution will be sought from the financial sector because we believe it is capable of providing it, and therefore the arrangements will also be sustainable
Key points
Preparations for the 2027 budget are also dominating the agenda in Bangkok. And personal income tax (IRPEF) remains one of the key issues under discussion, even following the release of the Dpb figures. Economy Minister Giancarlo Giorgetti has returned to the subject, speaking on the sidelines of the IMF meetings: ‘As regards personal income tax, given that all the pieces of the puzzle are now falling into place to allow for measures to be taken, the key decision we face is whether to implement selective or across-the-board measures.’
Collegial decision
The decision will be a collective one. As Giorgetti explained, ‘it is not right for the minister to decide alone; we will assess the situation together with the parties, the leadership and President Meloni. Two weeks ago I had an overview of income and expenditure; I’m not exactly optimistic now, but we are heading in the right direction’.
On the budget bill to wind up the parliamentary session next week
The timetable is tight. “Work on the Budget Bill will probably be finalised next week” and “we will present it to Parliament; as you know, a very constructive dialogue is continuing – I met Dombrovskis here too – regarding the NEC clauses on defence and energy”.
Banks’ contribution, but ‘sustainable’
Another key issue is how banks should contribute to the budget in terms of new revenue for the Treasury. The message from the Minister at Via XX Settembre is clear: “I can confirm that a contribution will be sought from the financial sector because we believe it can afford it; indeed, we believe the arrangements will be sustainable.” Giorgetti added that “keeping the spread under control is in everyone’s interest”, referring to the fact that the banks hold billions of euros’ worth of BTPs on their balance sheets.
On the prospect of possible legal challenges from the banks, the minister commented, ‘Every Italian could take the State to court for raising taxes. We will try to strike the right balance; I don’t think anyone will die as a result.’
