Meloni’s party seeks to double limit for cash payments in Italy

Italian economyAdd to myFTGet instant alerts for this topicManage your delivery channels hereRemove from myFTMeloni’s party seeks to double limit for cash payments in ItalyOpponents of proposal to increase cap to €10,000 say it would reward tax evaders and illegal businessBrothers of Italy lawmakers say their proposal will enable greater spending on luxury goods by foreign tourists © Artur Widak/NurPhoto/Getty ImagesMeloni’s party seeks to double limit for cash payments in Italy on x (opens in a new window)Meloni’s party seeks to double limit for cash payments in Italy on facebook (opens in a new window)Meloni’s party seeks to double limit for cash payments in Italy on linkedin (opens in a new window)Meloni’s party seeks to double limit for cash payments in Italy on whatsapp (opens in a new window) Save Meloni’s party seeks to double limit for cash payments in Italy on x (opens in a new window)Meloni’s party seeks to double limit for cash payments in Italy on facebook (opens in a new window)Meloni’s party seeks to double limit for cash payments in Italy on linkedin (opens in a new window)Meloni’s party seeks to double limit for cash payments in Italy on whatsapp (opens in a new window) Save Amy Kazmin in RomePublishedDecember 10 2025Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Italian Prime Minister Giorgia Meloni’s party has been accused by critics of promoting tax evasion with its plan to double the legal limit for cash payments to €10,000.In a draft amendment to next year’s budget — which must be approved by December 31 — lawmakers from Meloni’s Brothers of Italy have called for legalising cash transactions of up to €10,000, provided that a flat €500 “special stamp duty” is paid on any cash amount over €5,000. Brothers of Italy lawmakers say their proposal will enable greater spending on luxury goods by foreign tourists — who sometimes arrive in Italy with large amounts of cash — and help black money return into circulation in the legal economy. “We believe that there is a significant amount of cash in Italy for a long time that can be injected into the real, legal economy with a small contribution of €500 that we will tax on the expenditure,” Marco Osnato, chair of the finance committee in the lower house of parliament, told the FT.Senator Matteo Gelmetti, one of the bill’s main sponsors and a member of the Senate budget committee, said the higher cash transaction cap would help foreign visitors who come to Italy as well as the hotels, restaurants and shops that serve them. He also claimed that it was “a way for the state to raise money”, though he declined to estimate the potential gains. “We’re a highly touristic nation and we know there are a large number of tourists — especially from certain backgrounds — for whom cash is the norm,” Gelmetti said.Italy’s Prime Minister Giorgia Meloni © Filippo Monteforte/AFP/Getty ImagesFinance minister Giancarlo Giorgetti of the League, one of the parties in Meloni’s coalition, has yet to publicly express an opinion on the amendment’s pros and cons, an assessment that will strongly influence its prospects for adoption. However, opposition parties say the scheme would merely reward tax evaders and those involved in illegal businesses, who could spend their undeclared or ill-gotten earnings by paying only a minor tax.“It’s a strange idea. We consider it a desperate measure to raise money,” said Senator Antonio Misiani of the centre-left Democrat party, adding that only “criminals and mafia” were likely to take advantage of such offers.Parliament member Angelo Bonelli, of the Alleanza Verdi e Sinistra or Green and Left Alliance, called the measure a “direct favour to tax evaders, an incentive for the black economy, a step backward in the fight against illegality”.As part of its anti-money laundering efforts, the EU has introduced a Europe-wide €10,000 cap on cash payments in business transactions, a limit that takes effect on January 1 2027. But Brussels also allows member states to establish lower cash transaction limits if they so choose. In recent years, Italian reformers — including former prime minister Mario Draghi — have tried to discourage cash use and promote digital payments as part of a crackdown on Italy’s vast underground economy and rampant tax evasion.But Meloni’s Brothers of Italy and its allies in the League and Forza Italia draw strong support from small business owners who chafe at Italy’s tax burdens. Among Meloni’s first moves after taking office three years ago was the raising of Italy’s legal limit on cash transactions for businesses from €1,000 to the current €5,000.Meloni also tried to scrap the legal requirement for small businesses to accept digital payments, and wanted to allow them to demand cash for transactions below €60, but she was forced to backtrack after Brussels warned that such a move was counter to Italy’s pledge to promote digital payments and put the country’s public finances on a sounder footing.According to a recent estimate by official statistics agency Istat, Italy’s “non-observed” or underground economy was valued at €217bn in 2023, equivalent to 10.2 per cent of GDP, and up 7.5 per cent in value terms from 2022. Of the underground economy, about €20bn were revenues from illegal activities, while the rest were from activities that were ostensibly legal but taking place outside the tax net, including employment of unregistered workers in enterprises, and undeclared rents paid in cash, Istat said in its October report.Additional reporting by Giuliana RicozziReuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Italian politics Add to myFT Italian economy Add to myFT Tax evasion and avoidance Add to myFT Brothers of Italy Add to myFT Giorgia Meloni Add to myFT Comments