Italy approves 40% windfall tax on banks for 2023 as profits soar

Proceeds from levy on interest rate income will be used to help mortgage holders and cut taxes

Italy has approved a 40% windfall tax on banks and will use proceeds to help mortgage holders and cut taxes, the deputy prime minister said, in a move that sent banking shares plunging.

“One has only to look at banks’ first-half profits … to realise that we are not talking about a few millions, but … of billions,” Matteo Salvini, who is also the country’s infrastructure minister, told a news conference in Rome.

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