Italian Bank Stocks Fall on Windfall Tax Plan

Shares of Italian banks sank Tuesday after Italy became the latest country in Europe seeking to tax lenders for the gains they have made thanks to higher interest rates.

Italy’s right-wing government said banks will have to pay a one-off 40% windfall tax on the income made from higher interest rates in 2023 or 2022, whichever is higher. Parliament still needs to pass the legislation to introduce the levy.

The money will be used to relieve the financial pressure on homeowners, whose mortgage payments have risen in recent months.

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