Banks to Contribute 2.8 Billion to Budget Using Old Excess Profits Mechanism

Rome: Banks will contribute approximately 2.8 billion to the next budget, and the hypothesis currently on the table would involve a mechanism that uses the old tax on excess profits, which effectively saw banks avoid taxation by setting aside 6.2 billion to reserves, which can now be released, government sources said Monday.

According to Ansa News Agency, this amount-relating to the years 2022-24-could be subject to an extraordinary contribution of around 26-27% (much lower than the 40% initially envisaged), which would generate around 1.6 billion.

The remaining 4.6 billion could be paid to shareholders who would pay the 26% due on financial returns, another 1.2 billion bringing the total to 2.8 billion.