Overview
- Istat, which reported Friday, said tax pressure reached 43.1% in 2025 and 51.4% in the fourth quarter, the highest since 2014.
- Tax pressure means the share of taxes and social contributions in GDP, which rose by 0.7 percentage points from 2024.
- The deficit-to-GDP ratio stayed at 3.1% for 2025, and Istat will send the final figure to Eurostat on April 22.
- Household income rose 2.4% for the year but fell 0.4% in Q4, while purchasing power slipped 0.8% and families spent more and saved less.
- Non‑financial firms saw profit rates edge down to about 43% as investment intensity rose to roughly 25%, with household investment falling, especially in housing.
- Government sources linked higher tax take to more people in work and pledged future tax cuts, while opposition parties called the results a policy failure.
- Economist Carlo Cottarelli cited fiscal drag, stronger taxes on financial gains, stock market strength, and less tax evasion from e‑invoicing and card payments as key drivers.