Intesa CEO takes aim at Italy's plan to hike taxes on financial sector

Intesa CEO Challenges Italy's New Tax Hike on Banks and Insurers

Intesa Sanpaolo CEO Criticizes Government's Tax Plans

ROME, Oct 20 (Reuters) - Intesa Sanpaolo CEO Carlo Messina on Tuesday criticised Italian government plans to hike taxes on banks and insurers to help fund the 2027 budget, saying other sectors should help ease the burden of energy costs for households and firms.

Background on the Tax Agreement

Addressing an event in Rome, Messina said Italy's financial sector already agreed last year with Prime Minister Giorgia Meloni a three-year contribution to state finances, suggesting she was now changing the terms of the deal.

Details of the Contribution

• "We had proposed a one-year contribution, but they (the government) told us to make it a three-year contribution because that would provide stability for the state budget and for the banks as well," Messina said

Government's Taxation Plans

Planned Revenue Increases

• Italy plans to raise an additional €10.7 billion ($12.0 billion) from banks, insurers and other financial institutions over 2027 to 2029

• That is on top of an extra €12 billion through 2028 the government has already said it will raise thanks to a package of measures in this year's budget

Justification for Higher Taxes

• Economy Minister Giancarlo Giorgetti has justified higher taxation ​by saying the financial sector enjoys limited competition and also benefits from European Central Bank interest rate hikes ​and state guarantees on loans issued by previous governments in the wake of the COVID-19 pandemic

Messina's Response

• "There isn't a single sector that has to pay the price during difficult times," Messina said($1 = 0.8913 euros)

(Reporting by Giuseppe Fonte and Valentina Za. Editing by Alvise Armellini and Mark Potter)