On 21 November 2022, Italian Council of Ministers approved the State Budget for 2023 along with the multi-year budget for 2023 to 2025.
The budget increasing the tax credits for the purchase of natural gas and electricity through March 2023 and increasing credit amount from 40% to 45% for gas-intensive and energy-intensive companies from 30% to 35% for other companies.
Baby products and feminine hygiene products will be subject to reduced VAT rate 5% (currently 10%) and increasing the cash transactions cap from EUR 1,000 to EUR 5,000. The Government also proposes further suspension of Sugar Tax and Plastic Tax for 2023.
Besides the measures noted in the release, the Italian Council is also considering an increase in the extraordinary solidarity contribution (windfall profits tax) on energy companies from 25% to 35%.
