ROME – Italian defense companies whose profits have soared thanks to armed conflicts around the world could face higher taxes, Italy’s finance minister has suggested in a speech disputed by his allies.
Minister Giancarlo Giorgetti said imposing new taxes on Italian arms manufacturers could be part of an overall revenue boost by the Italian government, which is struggling to boost its finances.
“There will be a general call for everyone to contribute, not just the banks,” he said on Thursday, adding: “You could say that those who produce weapons are doing particularly well in all these wars.” doing.”
When asked if he would consider raising taxes on the sector, he said: “Apparently yes.”
He added: “We will adopt a budget that will require sacrifices from everyone.”
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Shares of Italy’s largest defense company, Leonardo, fell to 20.56 euros after Giorgetti’s 21.10 speech a day earlier, before rising slightly to 20.87 euros on Friday.
The company’s share price has risen dramatically over the past two years thanks to new orders and increases in defense spending fueled by the conflict in Ukraine.
From between six and seven euros per share just before the Russian invasion of Ukraine in February 2022, the price of Leonardo shares reached around 24 euros in June this year.
Announcing its half-year results in July, the company said it had a record order book worth €43 billion, helping it post a half-year profit of €555 million, up 168% on the previous year.
Giorgetti’s announcement, which came as the Italian government worked on its year-end budget, stunned allies in Italy’s right-wing government who oppose new taxes.
Federico Freni, a junior finance minister answering to Giorgetti, said: “There is no tax increase for everyone under study. New taxes are not part of this government’s DNA.”
On Friday, Italian Foreign Minister Antonio Tajani said: “No new taxes, we are absolutely against the imposition of new taxes,” adding: “There have been some misinterpretations of some words said yesterday” by Minister Giorgetti .
He said: “As long as we are in government, there will be no new taxes for Italians.”