Salvini Proposes 5% Annual Tax on Italy's Top 10 Banks
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Italian Deputy PM Salvini proposed a 5%-of-profits tax for three consecutive years on Italy's top ten banks — if enacted, the sector faces a second round of levies on top of the 2026 budget measures.
Who proposed it, and how much?
Deputy PM and League party leader Matteo Salvini said Tuesday his party will push for a special tax on Italy's ten largest banks in the 2027 budget.
The rate: 5% of annual profits, levied for three straight years. He pegged industry-wide annual profits at roughly €30 billion, implying about €1.5 billion a year in revenue.
He said "the entire governing coalition will back it," but for now it remains a League-only proposal still requiring coalition-wide approval.
Why target banks? What do the numbers show?
Salvini cited data showing Italy's two largest banks — Intesa Sanpaolo and UniCredit — earned a combined €12 billion in the first half, annualizing to over €24 billion.
This means → the top two alone account for most of the sector's profits, making "excessive earnings" the easiest political case for a levy.
He stressed the tax targets only large banks, not smaller regional lenders. In plain terms = this is a top-of-the-pyramid levy, not an industry-wide charge.
Hasn't this happened before?
The Italian government already raised taxes on the financial sector in its 2026 budget, collecting up to €6 billion through measures hitting banks, insurers, and market transactions.
This means → if the new proposal passes, Italian banks face two consecutive rounds of policy-driven profit extraction within a single year — the cumulative drag matters.
What should markets watch?
Whether top banks' margins can absorb back-to-back levies is the key variable. Intesa Sanpaolo and UniCredit sit at the center of an active M&A wave; extra tax burdens could reshape deal financing.
This reflects a broader European pattern — multiple governments are growing politically sensitive to bank "super-profits." Italy is not alone, but its pace is among the most aggressive.
Put simply = when banks earn big, governments want a cut. The risk is that too large a cut forces banks to rethink expansion and deal plans.
Content is for reference only, not financial advice.