Italy has passed the 2023 Budget Law worth USD 36 billion, one of whose policies is to increase the windfall tax on energy companies from 25% to 35%. It is planned that this tax revenue will be used to expand the provision of social assistance to the community and businesses amidst high energy prices and inflation. In a budget law approved by the government on Tuesday morning, Italy plans to increase the tax on the additional profits of companies selling energy from January to mid-2023. Next year, the tax will be calculated on the additional net profit declared by companies selling energy with higher prices, and not on sales as is done today. Plans to increase tax rates on additional profits generated from energy sales have been presented to parliament for the first time by the new government under Prime Minister Giorgia Meloni.

This discourse was confirmed after the UK also recently raised its taxes on oil and gas producers operating in the North Sea, and expanded the imposition of a windfall tax on low-cost electricity generators. The law approved by Italy's new cabinet is expected to face lengthy parliamentary scrutiny and will seek to be amended before final approval. Of course, some budget measures will create political tensions within the governing alliance. On the other hand, Meloni confirmed that he would spend more than EUR 21 billion from the 2023 budget on assistance to families and businesses facing high energy prices – adding to the approximately EUR 75 billion that has been spent by the government to keep the economy afloat. At the same time, his party also promised to provide subsidies for gasoline so that the Italian people could enjoy a price of EUR 0.15 per liter from the previous price of EUR 0.25 euros (Rp 4,044). Finance Minister Giancarlo Giorgetti reported before parliament that Italy's economic output grew 0.5% in the third quarter, and a contraction is expected in the last three months of this year. The budget law will also allocate funds for other measures, including extending the flat tax rate on income to EUR 85,000 for individual professionals and businesses, a slight review of the current pension system, reduction of VAT on basic goods for children, raising the threshold cash payments increased from EUR 1,000 to EUR 5,000 , and restarted construction of the bridge linking Sicily with mainland Italy.

Source: https://www.pajak.com/pajak/windfall-tax-di-italia-naik-jadi-35-persen/