The Italian government is preparing to unveil its budgetary measures, which will include significant changes in taxation aimed at reducing the financial burden on citizens and addressing public accounts.
The Maneuver 2025 will focus on structural reforms, particularly in the tax wedge and income tax brackets, which will impact a wide range of earners. The proposed changes to the tax wedge for employees aim to provide long-term relief by maintaining current benefits for individuals earning up to €35,000 and introducing contribution cuts and increased deductions for those with higher incomes. This is expected to stimulate consumer spending and economic growth.
The budget allocates €17.4 billion to the tax wedge reform, representing 60% of the overall maneuver.
The three-rate Irpef system is also set for an overhaul, with discussions about reducing the second rate for incomes between €28,000 and €50,000. The government aims to support middle-income earners who have been disproportionately affected by economic challenges.
The Maneuver 2025 also introduces social support measures, including a €1,000 newborn card to assist families with new children and an extension of the renovation bonus for first homes.
The government is tightening regulations surrounding cryptocurrency income to address concerns about tax evasion. The elimination of revenue thresholds for the Web tax indicates a shift towards a more comprehensive taxation strategy for online businesses.
Overall, the Maneuver 2025 aims to reshape Italy's economic landscape through targeted tax reforms and social support measures.