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Italy Eyes 33% IRPEF for Middle Incomes as Budget Talks Weigh Cost

Economy Minister Giancarlo Giorgetti calls the cut feasible only with a spending review under EU fiscal limits.

Overview

  • Prime Minister Giorgia Meloni has made lowering the intermediate IRPEF rate from 35% to 33% and extending it up to €60,000 a priority for the upcoming budget.
  • The measure is estimated to cost roughly €3–4 billion per year, with funding still unresolved and no “tesoretto” available, according to Giorgetti.
  • Simulations cited by Italian media indicate tax savings in the hundreds of euros for typical middle‑income households in the €40,000–€60,000 range.
  • The package under discussion also includes a price‑capped first‑home program prioritizing young couples and wage relief via detaxing production bonuses and overtime.
  • Coalition parties diverge on priorities, with Forza Italia and Fratelli d’Italia backing the IRPEF cut and the Lega pushing for new tax‑bill amnesties and an expanded 15% flat tax for some self‑employed workers.