Italy implements fiscal federalism decree to reform regional taxation

Italy has introduced new fiscal federalism regulations through Legislative Decree No. 147, published on August 11, 2026. The decree modifies the Irpef (personal income tax) by linking it more closely to regional autonomy. While the national tax base remains the same, regions will have greater flexibility to set their own regional surcharges. This allows local governments to increase, decrease, or even eliminate the regional surcharge to attract taxpayers or manage local budgets.

To maintain financial invariance, the State will reduce direct vertical transfers to local entities. Instead, regions will receive a share of Irpef participation amounting to 5.828 billion euros. The reform also aims to align regional surcharges with the national three-bracket model, as some regions currently still utilize four or five brackets.

Separately, records indicate that the publishing company Nuova Voce srl Unipersonale has received significant direct subsidies from the Department for Information and Publishing. The company received approximately 269,290 euros in 2024, 281,589 euros in 2023, and 269,290 euros in 2022, as part of support for newspaper and periodical publishers.