# Tajani tax reform proposals and political debate in Italy > Live situation record from CLSTR: https://clstr.news/situations/tajani-tax-reform-proposals-in-italy > Updated: 2026-08-19T13:41:00.000Z. Sources: 25. Developments: 4. 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. Media reports highlighted a gaffe, noting the government’s recent budget law had already reduced the second IRPEF tranche to 33%, meaning Tajani’s announcement repeated an existing cut. By August 2026, political debate intensified. Deputy Franco Mari of Alleanza Verdi Sinistra criticized the proposed IRPEF cuts as a ‘mockery,’ arguing they primarily benefit those earning over €50,000 and offer negligible relief against the rising cost of living. Concurrently, the government’s migration stance faced scrutiny following the implementation of the European Pact on Migration and Asylum, as neighboring countries like Austria began utilizing mechanisms to return asylum seekers to Italy. On 19 August 2026, Forza Italia further detailed its economic priorities for the upcoming budget law. Maurizio Casasco, the party’s economic department head, proposed extending the 33% IRPEF rate to incomes up to €60,000 and implementing a 5% incremental flat tax on income increases relative to the previous year. ## Timeline ### 2026-08-19: Forza Italia proposes tax cuts and bureaucratic reform for budget law Forza Italia proposes tax cuts and bureaucratic simplification for the upcoming budget law, including extending the 33% Irpef rate to 60,000 euros and introducing an incremental flat tax. 2 sources. https://clstr.news/cluster/forza-italia-proposes-tax-cuts-and-bureaucratic-reform-for-budget-law ### 2026-08-19: Italy budget discussions focus on tax and pension reforms Italy's budget discussions center on IRPEF tax reforms, potential early retirement at 64, and adjustments to minimum pensions amid debates over economic impact and social equity. 3 sources. https://clstr.news/cluster/italy-faces-debate-over-budget-tax-cuts-and-migration-policy ### 2026-07-27: Antonio Tajani pushes new tax cut plan for Italy Antonio Tajani, Italy’s vice‑president, unveiled a tax‑cut plan including a lower Irpef rate for incomes up to €60k, vehicle tax abolition, health‑expense deductions, and start‑up incentives, while a media note 12 sources. https://clstr.news/cluster/antonio-tajani-pushes-new-tax-cut-plan-for-italy ### 2026-07-25: Italy's Vicepremier Tajani proposes cutting IRPEF to 33% for incomes up to €60,000 Italy’s Vicepremier Tajani proposes reducing IRPEF to 33% for incomes up to €60k, adds tax breaks for families, youth and women, and urges more regular non‑EU workers. 8 sources. https://clstr.news/cluster/italys-vicepremier-tajani-proposes-cutting-irpef-to-33-for-incomes-up-to-60000 --- Cite as: Tajani tax reform proposals and political debate in Italy. CLSTR, https://clstr.news/situations/tajani-tax-reform-proposals-in-italy