Italy Cabinet Announces Draft Budget Measures for 2026-2028, Extension of Incremental Measures on Tourist Tax

The Italian Council of Ministers Oct. 14 issued Press Release No. 145, announcing the presentation of the Draft Budgetary Document (DBP), previewing the draft budget law for 2026-2028. The measures include: 1) reducing the second individual income tax (IRPEF) rate from 35 percent, to 33 percent; 2) extending the deduction for construction work to 2026; 3) creating a tax for businesses located in special economic zones (SEZs) and simplified logistics zones (SLZs) over the three-year period; and 4) extending the sterilization of the plastic and sugar tax to Dec. 31, 2026. The announcement also includes the same date approval of ...