Key facts
- Italy's 2027 budget raises corporate tax for banks to 30.5% and insurers to 27%.
- Financial firms will contribute over €5 billion, energy and gaming firms €700 million each.
- The budget deficit is projected to rise to 3.4% of GDP in 2027.
- Income tax bracket for 33% rate expands to €55,000 annually.
- Self-employed income taxed at 15% up to €100,000.
Italy's government has approved its 2027 budget, which includes tax increases for banks, insurers, energy firms, and the gaming industry to help finance the package. The expansionary budget aims to raise over €5 billion from financial firms and €700 million each from energy and gambling sectors. The corporate tax rate for banks will increase to 30.5% from 27.5%, and for insurers to 27% from 24.1%. The government plans to increase the budget deficit to 3.4% of GDP in 2027, exceeding the EU's 3% ceiling, to fund tax cuts for middle earners and the self-employed, and boost healthcare spending.