(Bloomberg) -- Italy’s ABI bank lobby said clients won’t be affected by new tax measures included in the country’s latest budget.
The organization’s Chairman Antonio Patuelli said Wednesday that while it’s too soon to assess the overall financial hit to the sector, the banks themselves will absorb the impact of a recently enacted postponement of tax deductions.
“I don’t expect it will translate into an increase in tariffs and cost of services for clients,” Patuelli said.
Speaking at an event in Florence, the chairman also noted that the sector has weathered such changes before, saying this is not the first time fiscal benefits for lenders in Italy have been postponed.
Italy’s parliament is set to begin budget discussions after Prime Minister Giorgia Meloni’s government submitted a final text of the plan to the lower house.
The budget calls for freezing state-guaranteed deferred tax assets on past credit losses, IFRS9 reporting and goodwill by delaying their deductibility for 2025 and 2026. Recovery of those tax credits will start in 2027.
Meloni and Finance Minister Giancarlo Giorgetti have quantified the contribution Rome will receive from banks and insurers at €3.5 billion, just a fraction of the state’s overall expenses for 2025.
Meloni’s cabinet last week approved the €30 billion ($32 billion) budget, which still needs to be passed by the parliament.
--With assistance from Alberto Brambilla.
©2024 Bloomberg L.P.
