2026 Budget: Personal Income Tax, Tax Amnesty, and Flat Tax: Giorgetti and Salvini's Moves

The Government is accelerating the next budget law , which will be presented to Parliament on October 20th.

Economy Minister Giancarlo Giorgetti and Deputy Prime Minister Matteo Salvini reiterated several key guidelines from the stage in Pontida: reducing personal income tax rates for the middle class and achieving tax amnesty through the cancellation of tax bills. These two measures, combined, are worth between €3.5 and €4 billion. Then there's the flat tax and a commitment to banks .

Revision of personal income tax and fiscal peace are an ambitious goal, which Giorgetti calls "responsible," but which requires certain coverage.

The minister, encouraged by Fitch 's positive assessment of Italy's credit rating and hoping for an upcoming ECB interest rate move, emphasizes the need to protect savers and ensure the soundness of the country's finances. Meanwhile, tomorrow ISTAT will publish updated data on national economic accounts, which are crucial for calibrating the Public Finance Planning Document (DPFP, formerly Nadef).

From the stage in Pontida, Deputy Prime Minister Matteo Salvini relaunched the League's flagship plan: extending the flat tax to all workers, canceling 170 million tax bills , and increasing the net income to €1,000 for those earning between €28,000 and €6,000. A plan that, according to Salvini, must also involve the banking system :

The big banks, instead of earning 46 billion to distribute dividends, will earn 42 or 43, and I don't think anyone in the financial institutions will have trouble paying for it. Anyone who can should lend a hand, for example by supporting the minister with a housing plan to allow our children and grandchildren to buy a home, and this is one of our priorities.

It is unlikely that the League will not come into conflict with Forza Italia , which protects the interests of the Berlusconi family, which boasts significant stakes in Banca Mediolanum.

Furthermore, it is already known that Salvini has set his sights on the ISEE : in view of the next Budget, the Deputy Prime Minister is aiming to modify the ISEE rules since the benefits always go to the same beneficiaries, as he has already had occasion to say.

In addition to income tax and scrapping, requests for intervention are multiplying. Confedilizia is pushing for a flat-rate tax on shops, and Confindustria is pushing for measures to support productivity and the industrial system. Among the most concrete options are:

• tax exemption on thirteenth-month salaries and productivity bonuses;
• incentives for new hires with zero Irpef tax rate;
• strengthening of the single allowance and newborn bonus;
• Extension of the 50% building bonus for first homes.

On the insurance front, cigarette prices are expected to rise again (with lower increases than the EU estimates), while the two-year preventive agreement for VAT payers could generate revenue that could be used to reduce personal income tax (IRPEF) from 35% to 33%.

“There is no treasure to spend,” Giorgetti had announced the day before at the Open festival in Milan.

The real test will come tomorrow with the ISTAT data: crucial numbers for establishing the room for maneuver and supporting the EU's request for Italy's early exit from the excessive deficit infringement procedure. The game is wide open and only just beginning.

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