The Italian Senate approved this Saturday with a vote of confidence the general budgets for 2025 that contain measures for an expenditure of 30,000 million with the transition to three rates of Irpef as the main measure and a contribution of 3,500 million from banks and insurance companies.
The budgets were approved by a vote of confidence imposed by the Government, which concluded with 108 votes in favor and 63 against, a mechanism that makes it possible to avoid debate on the amendments presented and accelerate their ratification before the end of the year.
The Minister of Economy, Giancarlo Giorgetti, defined the budget law as “prudent”, since Italy aims to reduce next year’s deficit to 3.3% of gross domestic product (GDP) from the 3.8% expected in 2024.
The main measure of the budget law is the reduction of the tax wedge for incomes of up to 40,000 euros and the transition to three types of Irpef and these two measures alone weigh almost 18,000 million euros.
Irpef rates will be 23% for incomes of up to 28,000 euros, 35% from 28 to 50,000 euros and 43% above 50,000 euros.
In addition, it is expected that in the three-year period 2025-2027 the spending review carried out by the ministries will yield savings of around 7,700 million, of which 3,000 million are already expected to be made next year.
Regarding coverage, a burden is imposed on insurance banks, of which 3.5 billion will arrive with a change in the banks’ tax credit system derived from past losses, known as deferred tax assets and which will be allocated to the national system. of health.
Regarding the so-called webtax, compared to the initial version that was for all companies, the 3% tax on digital services was approved only for large companies with global revenues exceeding 750 million.
The tax on cryptocurrency capital gains in 2025 remains at 26%, but will rise to 33% from 2026.
It also includes a €1,000 bonus for parents of newborns, although it will be determined on a means-tested basis, excluding the wealthiest families, as part of efforts to reverse Italy’s declining birth rate.
The so-called Quota 103 plan was approved, which allows people to start applying for a pension before the retirement age of 67, under certain conditions. Health resources will increase by 1.3 billion for contract renewals in 2028-2030 with increased allocations for doctors, nurses and health personnel working in emergencies.
“Very balanced” budgets
In a note, the Italian Prime Minister, Giorgia Meloni, assured that her Government’s third budgets are “very balanced” and “low and medium incomes are supported, it helps families with children, it allocates record resources to healthcare, “It reduces fiscal pressure and lends a hand to those who produce and create employment and well-being.”
“We have used the limited resources available to reinforce the main measures introduced in recent years, making some of them structural and broader in scope, starting with the cut of the tax wedge. We have continued on the path of supporting birth rates and employment feminine, and we have intervened to support companies that invest and reinforce their strength and competitiveness,” he added.
And he valued: “We have kept our accounts in order, without giving up applying the electoral program that we presented to the Italians, and we have further promoted our commitment to fight against real evasion and lay the foundations for a new relationship between the State and the citizens”.
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