Tax increase is coming to the banking and energy sectors in Italy

The council of ministers, which met last night under the chairmanship of Prime Minister Meloni, gave the green light to the 26 billion euro expansionary new budget plan, which aims to support middle-income earners and strengthen the health system for 2027, when ordinary general elections will be held in the country.

With the effect of the new incentive and support package, the country's budget deficit to GDP ratio is expected to increase.

The budget deficit rate, which is projected to be 2.9 percent for 2026, is aimed to rise to 3.4 percent next year, exceeding the European Union's 3 percent ceiling limit.

In order to finance the expansionary budget, additional obligations were imposed on sectors that declared high profitability.

5 billion euro additional contribution

In this context, financial institutions will need to contribute more than 5 billion euros to the budget. Energy companies and the gaming industry will each transfer 700 million euros of additional resources to budget financing.

Meloni, who appeared in front of the cameras after the cabinet meeting, said that the budget is worth 26 billion euros and includes some tax cuts aimed at relieving the financial burden on middle-income and self-employed workers and elements that increase the funds allocated to national health services.

Prime Minister Meloni noted that they allocated 3.4 billion euros to the National Health Fund.

Stating that approximately 5 billion euros of the budget resources will come from the financial sector, which includes banks and insurance companies, Meloni said, "We did not have the opportunity to reach an agreement with the financial sector in advance, but I would like to thank this sector. I believe that banks and insurance companies also understand the current situation and share the need to support."

700 million euros from energy companies

Meloni stated that they requested an additional contribution of approximately 700 million euros from energy companies.

Prime Minister Meloni also said that the exemption from vehicle ownership tax for small and medium-sized vehicles starting from next year is permanent and structural.

Meloni also stated that with this budget plan, Italians will be able to have special plates with the letters and numbers they want installed on their vehicles.

The 2027 budget is expected to be discussed and voted on in the lower and upper houses of the parliament next month.