Intesa CEO takes aim at Italy's plan to hike taxes on financial sector

Intesa Sanpaolo

Tue 14:03

ROME, Oct 20 (Reuters) - Intesa Sanpaolo ISP.MI CEO Carlo Messina on Tuesday criticised Italian government plans to hike taxes on banks and insurers to help fund the 2027 budget, saying other sectors should help ease the burden of energy costs for households and firms.
Addressing an event in Rome, Messina said Italy's financial sector already agreed last year with Prime Minister Giorgia Meloni a three-year contribution to state finances, suggesting she was now changing the terms of the deal.
"We had proposed a one-year contribution, but they (the government) told us to make it a three-year contribution because that would provide stability for the state budget and for the banks as well," Messina said
Italy plans to raise an additional €10.7 billion ($12.0 billion) from banks, insurers and other financial institutions over 2027 to 2029
That is on top of an extra €12 billion through 2028 the government has already said it will raise thanks to a package of measures in this year's budget
Economy Minister Giancarlo Giorgetti has justified higher taxation ​by saying the financial sector enjoys limited competition and also benefits from European Central Bank interest rate hikes ​and state guarantees on loans issued by previous governments in the wake of the COVID-19 pandemic
"There isn't a single sector that has to pay the price during difficult times," Messina said

($1 = 0.8913 euros)

 (Reporting by Giuseppe Fonte and Valentina Za. Editing by Alvise Armellini and Mark Potter)
 ((giuseppe.fonte@thomsonreuters.com; +390680307711;))