Italy pushes election‑year tax cut on thirteenth salaries while seeking EU oil super‑profit levy
Executive summary: Italian majority parties are urging the government to reduce the tax rate on thirteenth salaries to 15 % for low‑income workers; Lega is advocating a flat tax limited to €100 000; Italy and five other EU countries have sent a joint letter to the EU requesting a tax on oil companies’ extraprofits. The measures would increase household purchasing power, influence consumer‑spending trends, and signal an election‑year fiscal stance, while the proposed EU oil tax could affect energy‑sector profitability and set a precedent for supranational taxation.
Who is involved: Italian government (coalition parties), Lega party, Ministry of Economy and Finance, unspecified five EU member states, major oil corporations operating in Europe.
Likely next: Parliamentary debate and possible approval of the thirteenth‑salary tax cut in early September 2026; Lega to file its flat‑tax bill by mid‑September; EU Ecofin council to discuss the oil super‑profit tax proposal at its October meeting.
The Italian governing coalition is pressing to lower the tax on the annual thirteenth‑salary payment to 15 % for low‑earners, a move aimed at boosting disposable income ahead of polls. At the same time, the Lega party revives its flat‑tax proposal capped at €100 000, and Rome has joined five other EU states in urging Brussels to introduce a solidarity tax on oil companies’ extraordinary profits. Together these initiatives signal a broader shift toward targeted fiscal relief and a potential new EU‑level revenue stream from the energy sector.
Timeline
- — Manovra, la misura elettorale: meno tasse sulle tredicesime (la Repubblica — Economia)
Analysis — what this means
Likely next events
- Parliament vote on the thirteenth‑salary tax decree expected early September 2026
- Lega to submit flat‑tax legislation (€100 000 cap) by mid‑September 2026
- EU Council to deliberate on oil extraprofits tax at the October 2026 Ecofin meeting
Sectors affected
- Retail
- Consumer goods
- Automotive
Regulatory implications
- Provisional 15 % tax rate on thirteenth salaries for incomes below roughly €30 000 (as outlined in the coalition proposal)
- Lega’s flat‑tax proposal caps taxable income at €100 000 with a single rate
- EU initiative for a solidarity tax on oil superprofits – rate and scope to be defined
Historical parallels
- 2008 Italian Irpef reduction on thirteenth salaries as an anti‑crisis measure
- 2022 EU windfall tax on energy companies introduced after the Russia‑Ukraine war
Sources
- Manovra, la misura elettorale: meno tasse sulle tredicesime — la Repubblica — Economia
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