Italy will Impose a 40% Tax on Banks with High Profit

Italy banks are still weak and a problem for the euro zone

In Italy, banks will be taxed at 40% already this year, in case of high profits.

Deputy Prime Minister and Infrastructure Minister Matteo Salvini said he would use the funds to help mortgagees and reduce taxes. This regulation, which according to “Bloomberg” surprised the markets and financial circles, was approved by the Italian government late on Monday night in the last meeting before the summer break.

The Italian government has included the bank tax in a package of measures that covers a wide spectrum – from taxi licensing to foreign investment. According to “ANSA” agency, this tax may fill the state treasury with more than two billion euros.

“It is enough to look at the profits of the banks in the first half of 2023 to be sure that we are not talking about a few million, but billions of profits, which is the result of, among other factors, the increase in the rates of the European Central Bank,” said Salvini at a press conference in Rome, where he is the Prime Minister It was announced without Melon. As Bloomberg notes, the far-right League leader is the most active member of the ruling coalition when it comes to populist issues.

“If the value of money has doubled for people and businesses, and it has, the amount that current account holders receive in dividends has not really doubled,” Salvini said, adding that there is a big difference between the rates charged for loans and the rates at which banks charge depositors. They pay dividends.