most controversial provision of by order for allWith effect from August 11, relates to extraordinary profits, which banking institutions, operating mainly in the hidden sector, are trying to rectify by taking advantage of the opportunities presented. Come on Italy. Bankers seem to have welcomed the first reforms of the government. Since the levy cannot exceed 0.1% of net worth, the effect of this deduction appears to have been diluted. Furthermore, the choice not to specify earnings was also interpreted as an act of courtesy: the vagueness of the technical report, which refrains from “carefully” estimating earnings, may suggest the possibility of further changes in the future. Is.
Revision of FI
The main efforts aimed at bringing about change come mainly from Forza Italia, in contrast to the approach adopted by the league, as explained by Forza Italia’s deputy prime minister and leader, Antonio Tajani.
He said: “While I understand Prime Minister Giorgia Meloni’s decision, our position remains unchanged. We have already outlined a number of amendments aimed at ensuring that citizens continue to benefit from the support provided by the financial system. There are three guidelines we want to follow: First, we propose to waive the tax burden Banks that do not come under the jurisdiction of the ECB. These banking institutions are often small in size and local in nature, operating mainly in the center-south, collecting the savings of Italians and meeting the needs of families and businesses. It is in these realities that the risk of suffering the consequences of this measure is highest. In this case, a situation of greater uncertainty and insecurity would arise with respect to foreign banks present on Italian soil”.
words of freshness
In addition, Tajani said: “In addition, we will try to ensure that the tax can be considered tax deductible.” He reinforces this concept, saying: “It is necessary to underline that this measure should represent an extraordinary action. In September, we will try to set up a specific discussion table with representatives of banking institutions, as we consider this dialogue extremely important.
Tajani also goes on to analyze questions of method: “We should have announced the whole package of measures in the context of closed markets”. In addition to these statements, Tajani extended his speech: “If there is a need to raise funds for the state budget, it is also worth considering contribution from banks, However, it is necessary that such action is not perceived as hostile. We must uphold our international reputation and cannot afford to scare off investors by adopting a punitive approach towards banking institutions, which, it should be noted, play a significant role in financially distressed situations.”
However, there are opportunities for “Reduce Negative Effects” On the way that will lead to the conversion of the decree by 10 October. The main strategy to achieve this is represented by deductibility. One objective that will no doubt be appreciated by banks is to make the amount subject to withdrawal deductible from the tax base.
This may be an approved change or other changes following the conversion of the decree in Parliament, leaving the tax risk “further smaller than what happened on Tuesday”, as the Financial Times remarked. The Economic Times has once again covered the tax issue, calling it “disastrous” and perhaps even “the biggest mistake” made by the Meloni government.
How much does tax cost on banks
Talking about the extent of possible impacts arising from the introduction of extra-profit tax, it is worth noting that analysts and financial institutions have made various assessments, despite the uncertainty arising from the provisions mentioned so far. Mediobanca SecuritiesFor example, it has calculated that the introduction of this tax could impose a financial burden of around 1.9 billion euros on the banks and asset management companies that are under their supervision.
Although this figure could be as low as 1.3 billion if reductions were granted, the impact on earnings per share would remain in the single digits (i.e. less than 10%) or the capital requirement could decrease Cet1 by about 10-20 basis points.
In addition to the direct effects resulting from government actions, it is also necessary to consider the indirect effects that may arise in the long run, especially in the eyes of foreign investors. These investors, in particular, may be affected by the uncertainty associated with the domestic debt sector and other unique initiatives launched by the government, as particularly highlighted in the international press. It is precisely on this more delicate terrain, above all because it is connected with the element of trust, that it will be necessary to operate after the omnibus law decree has been converted.