Overview

• The government plans to cut the second IRPEF bracket from 35% to 33% for incomes of €28,000–€50,000, offering middle-class taxpayers up to €627 in annual savings.
• The Ufficio Parlamentare di Bilancio warns that the more progressive IRPEF structure could intensify fiscal drag, increasing tax revenues by about €370 million under 2% inflation.
• Deputy Minister Maurizio Leo has signaled that policymakers will introduce relief measures, such as indexing or additional deductions, to counter income erosion from bracket creep.
• The Senate approved a decree requiring 2025 IRPEF advances to be calculated using the new rates and deductions, affecting roughly 2.2 million self-employed and non-wage earners.
• A draft fiscal decree would bar overlapping incentives for returning residents and postpone sugar tax modifications into a separate legislative package.