May 2, 2022
Italy Raises Windfall Tax on Energy Industry Profits to 25%
(Bloomberg) -- Italy raised its windfall tax on profits in the energy industry to 25% while approving a 14 billion-euro ($15 billion) aid package, as Prime Minister Mario Draghi pushes to diminish his country’s reliance on Russian gas.
The new measure, announced Monday evening by Finance Minister Daniele Franco, does not include additional deficits, and Rome will also extend tax breaks for energy-intensive industries.
The Italian government has already spent more than 20 billion euros this year to shield its economy from soaring energy prices and has taken dramatic steps to reduce its reliance on Russian supplies, which account for about 40% of gas imports.
The new measures come as the European Union debates an additional round of sanctions that would phase out Russian oil by the end of the year.
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