Italy’s Meloni government has approved an unexpected tax on banks’ “excess profits” this year.
The tax policy has been included in a wide package of measures ranging from taxi licenses to foreign investment. The excess profits tax could put more than 2 billion euros ($3.1 billion) into the state coffers, according to ANSA news agency.
Deputy Prime Minister Salvini said at a news conference in Rome that he had agreed to “recover 40% of excess bank profits of billions of euros” expected in 2023. It is expected to become a financial resource for tax reduction and housing loan support for first-time buyers.
Italian bank stocks fell sharply on Monday. Shares of UniCredit were down 6.7% at one point, while shares of Intesa Sanpaolo were down 8.6%.
The Meloni administration has consistently criticized the European Central Bank (ECB) for raising interest rates, but on the 8th it turned the brunt of its criticism on the ECB. “We have been saying for months that the ECB was wrong to raise interest rates, and this is a natural result,” Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Tayani told Corriere della Sera newspaper.
Italian banks’ profits rose sharply in the first half as rising interest rates boosted lending income. Intesa Sanpaolo and Unicredit raised their full-year forecasts again last month, boosted by rapid monetary tightening by the ECB.
Original title:Italy Surprises Markets With Tax on ‘Extra’ Profits of Banks (1)、Italy’s Windfall Profits Tax on Banks Spooks Markets (1)(excerpt)
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2023-08-08 07:20:41
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