Particle.news
Download on the App Store

Watchdogs Challenge Italy’s 2026 Budget: Irpef Cut Skews to Higher Earners, Rottamazione Seen Costly

Amendments now go to Parliament after warnings from Istat, Bankitalia, the audit court and the budget office.

Overview

  • Istat reports that more than 85% of resources from the two‑point Irpef cut would go to the richest income quintiles, with about 14 million taxpayers affected and an average gain of roughly €230 per taxpayer and under 1% of family income.
  • The Parliamentary Budget Office estimates average annual savings of €408 for executives versus €23 for workers, says about half of the total tax relief flows to the 8% of taxpayers earning over €48,000, and projects Irpef revenue down roughly €2.7 billion at regime.
  • Bank of Italy warns the new tax settlement would reduce net receipts by about €1.5 billion in 2026 and €0.5 billion per year thereafter, noting limited effects on overall income inequality and past shortfalls in collections from similar measures.
  • The Court of Auditors cautions that raising the flat tax on short‑term rentals to 26% risks driving more lettings off the books and reiterates compliance concerns around the settlement measure, noting larger Irpef gains for incomes between €50,000 and €200,000.
  • Economy Minister Giancarlo Giorgetti defends the package as support for middle incomes, cites a typical benefit near €218 and a €440 maximum, calls this the last settlement, and signals openness to targeted changes as amendments are due by November 14.