Italy increases corporate tax for energy companies to lower consumer bills

Prime Minister Giorgia Meloni announced a two percentage point hike in the IRAP tax for energy firms today. The revenue will help lower bills for households.

Insights:
The government of Italy ITIT announced on February 18, 2026, a two-percentage-point increase in the IRAP corporate tax rate specifically targeting energy firms. This fiscal policy change, introduced under the administration of Giorgia Meloni, is part of a wider package of measures to cut energy bills for households and businesses. The measure alters tax liabilities for companies that produce, distribute, and supply energy, as the government seeks to address rising costs through sector-specific taxation.
Italian Prime Minister Giorgia Meloni speaks during the Italy–Germany Business Forum at the Grand Hotel Parco dei Principi, in Rome, Italy, January 23, 2026. REUTERS/Matteo Minnella
Italian Prime Minister Giorgia Meloni speaks during the Italy–Germany Business Forum at the Grand Hotel Parco dei Principi, in Rome, Italy, January 23, 2026. REUTERS/Matteo Minnella
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