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Istat Says Most of Italy’s IRPEF Tax Cut Would Go to the Richest Fifth

The assessment to budget committees reports an average benefit of about €230 per taxpayer.

Overview

  • The measure would involve just over 14 million taxpayers and about 11 million families, roughly 44% of resident households, with an average gain of about €276 per family.
  • More than 85% of the resources would accrue to higher‑income households, concentrating benefits in the top two income quintiles.
  • Over 90% of families in the richest fifth would be affected by the cut, compared with more than two‑thirds in the second‑richest fifth.
  • Average annual gains range from €102 for the poorest fifth to €411 for the richest fifth, representing less than 1% of family income across all groups.
  • Istat President Francesco Maria Chelli presented the findings on November 6 in a hearing before the Senate and Chamber budget committees to inform scrutiny of the budget.