Tajani tax reform proposals in Italy

On 25 July 2026, Italy’s vice‑premier and Forza Italia leader Antonio Tajani unveiled a tax plan to lower the personal income‑tax rate (IRPEF) from 35 % to 33 % for earnings up to €60,000. The proposal also called for waiving the vehicle tax, allowing current‑year health‑expense deductions, and granting credits for mothers, young entrepreneurs and employers hiring young workers. Tajani linked the reforms to using a portion of Italy’s €2 trillion private savings for public‑private infrastructure projects and cited a reduction in irregular migration and a need for more regular non‑EU workers.

Two days later, Tajani reiterated the same IRPEF cut and added further measures: abolishing the vehicle registration tax, cutting road tax on cars and motorcycles, moving health‑expense deductions to the year incurred, and offering five‑year tax‑free periods for start‑ups. He also suggested a progressive “flat‑tax” model that would lower marginal rates for higher producers and expanded incentives for hiring youth and supporting women. Media reports highlighted a gaffe – the government’s recent budget law had already reduced the second IRPEF tranche to 33 %, meaning Tajani’s announcement repeated an existing cut.