An 18.7 billion euro budget law focused on cutting Irpef for the middle class, with a package of measures for the family worth 1.6 billion, interventions to support businesses for 8 billion and resources for the hiring of doctors and nurses. Scrapping is back, but in a more selective way, with installments for 9 years, it concerns a potential audience of 16 million people.
On pensions there will be a partial sterilization of the increase in working age linked to the growth in life expectancy: 1 more month will be needed from 2027, 2 from 2028. Minimum pensions will increase by 20 euros per month.
News for families and taxes
The bonus for working mothers goes from 40 to 60 euros per month. Remove the first house from the ISEE calculation. The deductions on building renovations in force this year are confirmed. Nothing to be done, however, regarding the bonus for the purchase of school books which had initially been hypothesized. The cost of cigarettes will increase slightly as part of the excise duty review.
The government’s maneuver and priorities
A lighter maneuver than the last ones is looming, which is affected by geopolitical tensions, from conflicts in Ukraine and the Middle East to the trade war on tariffs. “It is a serious and balanced maneuver, it has four priorities: birth support, tax cuts, contributions to families and an increase in healthcare funds”, comments Prime Minister Giorgia Meloni. Then he underlines: “There is an important contribution from banking and insurance institutions that I want to thank, we have found a willingness that was not to be taken for granted.”
Among the financing items, the one that most animated the debate within the majority is the contribution requested from credit institutions, approximately 11 billion over the next three years, through the payment of a reduced tax rate to release the capital put in reserve, the 2% increase in IRAP, a new regime for the deductibility of doubtful loans.
“The banks will make their assessments based on this year’s results, which however seem to me to be fine”, explains Economy Minister Giancarlo Giorgetti. Which underlines: “We believe that the impact of the measures adopted on the banking and insurance system is absolutely bearable”.
Defense spending and financing
Among the variables that influence spending is the need to increase defense spending as per international commitments. “Twelve billion is the extra figure that will be in the 2028 budget, it is equal to 0.5 percent of GDP. They can be financed either with the BTP or with the Safe, which is very similar to the Pnrr, with long-term loans that must be repaid”.
Irpef cut for the middle class
The second Irpef rate is reduced from 35% to 33% for incomes up to 50 thousand euros, in an intervention of 2.8 billion per year. The sterilization of the cut will take place above 200 thousand euros, taxpayers in the range between 50 and 200 thousand euros will instead benefit from reductions in the rate.
Fiscal Peace
The new ‘selective’ scrapping will last 9 years and will have bimonthly installments of the same amount. It will be open to all those who have declared but not paid. The audience of potential members is 16 million people.
Health Fund
2.4 billion more than last year are expected in the sector. The goal is to hire around 6,300 nurses and another thousand doctors, and increase healthcare workers’ paychecks.
Aid to Businesses
Around 8 billion euros to support companies with various measures including super depreciation, super deduction of costs for new hires and tax credit for the SEZ.
Pensions
A partial sterilization of the working age linked to the growth in life expectancy is looming. To retire, you will need 1 more month of work from 2027, which will become 2 from 2028. Minimum pensions will increase by 20 euros per month, last year the increase was 6 euros.
Withdrawal on Banks
Credit institutions will have the possibility to pay a reduced tax rate on capital reserves with the 2023 law. The IRAP increase of 2% is also expected.
Tobacco
The expected increase in excise duties on tobacco from 1 January could progressively increase the price of cigarettes up to 1.5 euros more per pack by 2028. The budget for 2024 had already increased the excise duty on shredded tobacco.