Italy continues to water down its bank windfall tax

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Italy continues to water down its bank windfall tax

At this point, you have to wonder why Italy even bothered with the bank windfall tax.

Weekend reports indicate that the windfall tax on Italian banks -- which has already been watered down since it was introduced in August -- will be virtually scrapped. Rather than paying the levy, which would have been 40% of extra profit between 2021 and 2023, banks can avoid it altogether by allocating 2.5x of the amount of the tax to strengthening Tier 1 ratios.

The tax had caused strife within the coalition government and drew criticism from the ECB in a major stumble from the Giorgia Meloni government.

                This article was written by Adam Button at www.forexlive.com.

Source: Italy continues to water down its bank windfall tax

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