Italy imposes windfall tax on banks to fund mortgage assistance amid rising rates

Italy approved a 40% windfall tax on banks' excess profits to fund tax cuts and mortgage subsidies.
Tax targets banks' increased net interest income from ECB rate hikes.
Italian bank stocks plunged after tax announcement.
Revenue expected to raise billions to support consumers facing higher borrowing costs.
Critics concerned tax could have long-term implications and be extended beyond 2023.