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2025-12-12 18:19:04
[Italy's "Tax Increase Packages": Parcel Tax and Doubled Financial Transaction Tax Target E-commerce and Capital Markets] ⑴ The Italian government plans to introduce a series of tax increases to boost revenue, including a new tax on small parcels from non-EU countries and a significant increase in the financial transaction tax rate. ⑵ According to amendments submitted to parliament, Rome will levy a €2 tax on small parcels valued at no more than €150, expected to generate €122.5 million in revenue next year, and €245 million each in 2027 and 2028. ⑶ This parcel tax is aimed at online platforms such as Shein and Temu to protect their fashion industry from low-cost imports mainly from China, consistent with proposals under discussion at the EU level. ⑷ Simultaneously, the government plans to increase taxes on the transfer of stocks and other financial instruments, expected to generate an additional €337 million in revenue from next year. Specifically, the transaction tax rate in unregulated markets will increase from 0.2% to 0.4%, and the rate in regulated markets will increase from 0.1% to 0.2%. (5) As part of a package of new measures, the premium tax rate for vehicle accident insurance will increase significantly from the current 2.5% to 12.5%, while banks' ability to use past losses to offset tax bills will be further restricted. (6) Government documents show that Italy has abandoned its plan to eliminate tax breaks for short-term rentals; landlords will still enjoy a preferential tax rate of 21% on rental income from a single property, instead of the standard 26%. However, the ruling party has agreed to lower the threshold for registering short-term rental activities as commercial activities (meaning a heavier tax burden and additional costs) from five properties to three. (7) These measures highlight Italy's attempt, under fiscal pressure, to strike a balance between increasing revenue, protecting domestic industries, and addressing social concerns such as over-tourism and rising rents through tax system adjustments.
