Personal income tax cuts, measures for families and births, measures for growth and businesses, housing bonuses, and a new tax relief program. The first draft of the budget, which the government is finalizing for submission to Parliament, broadly confirms what was announced in recent days. Here are some of the key measures contained in the 137 articles.
WAGES AND INCOME TAX (IRPEF) – The IRPEF (personal income tax) cut for incomes between €28,000 and €50,000 has been confirmed, from 35% to 33%. The maximum benefit of €440 is reached at €50,000 and will be spread, due to the tax's application mechanisms, across subsequent incomes up to €200,000. The minimum benefit, €40 per year, applies to those who declare around €30,000. Those earning €40,000 would save €240 per year.
This money will be supplemented by tax exemptions for overtime, holidays, and night work for employees earning up to €40,000. A flat 15% tax will be applied to these items ("surcharges and allowances," even for those working during their weekly rest period, or for "shift allowances"), replacing not only personal income tax (IRPEF) but also regional and municipal surcharges. The measure also caps the tax discount each worker will receive at a maximum of €1,500. The tax-exempt threshold for meal vouchers will also be raised from €8 to €10.
PENSIONS - Starting in 2026, minimum pensions will increase by 20 euros per month, while the retirement age will increase starting with one month in 2027, followed by another two months in 2028.
SCRAPPING – The fifth tax amnesty is here, with payment terms of up to 9 years, with 54 bimonthly installments of the same amount (minimum €100, at least in the first draft). It will allow for the amnesty of debts assigned to tax collection agencies from January 1, 2020, to December 31, 2023, for unpaid taxes or social security contributions, excluding tax bills issued following an audit. Payment in installments will be subject to interest at a rate of 4% per annum.
GASOLINE - The rebalancing of excise duties between diesel and gasoline is accelerating. The tax will rebalance, decreasing on gasoline and increasing on diesel.
