Italy’s Council of Ministers has approved a draft Legislative Decree on 9 May 2025, introducing measures on local taxes and regional fiscal federalism as part of a tax reform.
The Decree introduces greater fiscal autonomy for territorial entities and simplifies the obligations for citizens and businesses. The Legislative Decree also introduces measures to encourage voluntary tax compliance, such as implementing reward systems for taxpayers using direct debit or offering favourable settlement options for outstanding tax liabilities.
The Decree also includes revisions to penalties for violations related to the municipal property tax (IMU), garbage collection tax (TARI), and tourist tax, along with steps to simplify IMU administrative requirements.
From 2025 to 2027, the share allocated to municipalities for the additional amounts assessed and collected will increase from 50% to 100%. This change aims to strengthen their role in combating tax evasion and encourage greater participation in recovery efforts.
