(Bloomberg) — Italy is looking for ways to finance its national budget with direct contributions from banks and companies, but the country will not levy taxes on excess corporate profits.
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The government is hoping for a contribution from those who have benefited most from particularly favourable circumstances, a government official said, but it would not levy a tax on profits.
An upfront payment of withholding taxes owed by customers, to be recovered over time through future cash flows, or the deferral of deferred tax assets are among the possible solutions banks are seeking to discuss with the Treasury Department, according to people familiar with the lenders’ thinking. The lenders declined to be named because they are not authorized to speak publicly.
Bloomberg previously reported that Prime Minister Giorgia Meloni was looking at a way to collect a levy from banks and insurers to help finance the country’s budget. The government was also looking at expanding the measure to other sectors, including energy.
Meloni needs to raise money to keep voters on side as Italy’s public finances come under pressure. She has repeatedly said the financial sector should help families who have suffered from high interest rates while banks have profited.
Finance Minister Giancarlo Giorgetti will present the 2025 budget in the coming weeks.
“Everyone will do their part,” Deputy Prime Minister and Lega leader Matteo Salvini told Ansa news agency earlier this week, saying banks and insurers must help the economy as much as craftsmen and workers.
–With help from Alessandra Migliaccio and Antonio Vanuzzo.
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