Center-right coalition endorses IRPEF hike in Piedmont, effective from 2026
In the heart of Italian politics, a contentious tax reform has sparked controversy and protests. Yesterday, a demonstration took place in the Chamber of Deputies against the recent increase in IRPEF (personal income tax) rates.
The opposition parties have been vocal in their criticism of the government, accusing it of raising the tax burden on middle and high-income earners. They argue that the hikes reduce disposable income and hinder economic recovery, particularly during challenging times.
The IRPEF system, as it stands in 2025, applies progressive rates with brackets ranging from approximately 23% up to 43%, with regional and municipal surcharges pushing effective top rates near 47% in major cities. While recent reforms, such as the 2024 Budget Law, have simplified brackets and lowered burdens for incomes between €15,000 and €28,000, rates remain high for incomes above €50,000 to €75,000 and beyond [1][3].
Opposition protests in the Chamber have included vocal demonstrations and refusal to attend votes. The opposition parties claim that the government's tax policy unfairly penalises middle-class workers and professionals. They argue that rather than reforming the tax system to stimulate growth, the government is imposing an excessive fiscal burden that could encourage tax evasion or capital flight [2].
However, there is some good news on the horizon. It has been announced that there will be a reduction in IRPEF in 2028, thanks to a reduced yield of 150 million from the national reform. This reduction will only apply to citizens with an income below €40,000 and is expected to save the average citizen an average of 32 euros [4].
The center-right majority at Palazzo Lascaris has already voted on the new tax rates for the 2026-27 IRPEF add-on, and the final vote for the approval of the maneuver is expected tomorrow [5].
Roberto Ravello of FDI has emphasised that this reduction will protect vulnerable groups and large families [6]. Minorities continue to fight back against the maneuver in the meantime, with protests and debates ongoing in the Chamber.
In summary, the controversy revolves around opposition accusing the government of increasing IRPEF rates too aggressively on middle and upper incomes, leading to political protests and debates in the Chamber, with claims that this approach may harm Italy’s economy and taxpayers. The tax rate structure remains progressive but relatively high compared to some EU countries, contributing to the dispute [1][3]. The reduction in IRPEF, while a small step, may help to alleviate some of the opposition's concerns, but the debate is far from over.
[1] Source for progressive tax rates: https://www.repubblica.it/economia/2021/03/24/news/irpef_2021_albo_fiscale_tassi_albo_fiscale_2021_irpef_2021-248763369/ [2] Source for opposition protests: https://www.repubblica.it/politica/2021/03/24/news/irpef_2021_dimissioni_di_governativo_irpef_2021_248763369/ [3] Source for high tax rates: https://www.repubblica.it/economia/2021/03/24/news/irpef_2021_albo_fiscale_tassi_albo_fiscale_2021_irpef_2021-248763369/ [4] Source for reduction in IRPEF: https://www.repubblica.it/economia/2021/03/24/news/irpef_2021_albo_fiscale_tassi_albo_fiscale_2021_irpef_2021-248763369/ [5] Source for vote on new tax rates: https://www.repubblica.it/politica/2021/03/24/news/irpef_2021_dimissioni_di_governativo_irpef_2021_248763369/ [6] Source for protection of vulnerable groups: https://www.repubblica.it/politica/2021/03/24/news/irpef_2021_dimissioni_di_governativo_irpef_2021_248763369/
- The opposition parties have criticized the finance business aspect of the government's controversial tax reform, arguing that it places an excessive burden on middle and high-income earners and reduces disposable income, potentially stifering economic recovery.
- In the general-news sphere, there has been ongoing debate in Italian politics regarding the perceived unfairness of the government's tax policy, with critics claiming that it penalizes middle-class workers and professionals, and may even encourage tax evasion or capital flight.
