Italy's Council of Ministers has announced its approval of a Decree-Law on urgent measures regarding excise duty and VAT on fuels during a meeting held on 2 May 2022. This includes a reduction in the excise duty rates on different fuels with effect from 3 May 2022 and until 8 July 2022, as well as a reduction in the VAT rate to 5% on natural gas used for transport. The Decree-Law was published in the Official Gazette the same day.

The Council of Ministers has also announced its approval of a Decree-Law on urgent measures concerning national energy policies, business productivity, and investment attraction, as well as the Ukrainian crisis. This was approved in a meeting held later in on 2 May 2022. Energy measures include:

• An increase in the tax credit for natural gas expenses from 20% to 25% for all qualifying companies in the second quarter of 2022;
• The introduction of a tax credit equal to 10% of natural gas expenses for companies with a high natural gas consumption in the first quarter of 2022;
• An increase in the tax credit for energy (electricity) expenses from 12% to 15% for qualifying companies other than energy-intensive companies in the second quarter of 2022; and
• The introduction of a tax credit equal to 28% of the expenses incurred in the first quarter of 2022 for the purchase of diesel by the qualifying haulers (road transport).

Measures are also provided to increase investment incentives, including:

• An increase in the tax credit for investments in intangible assets under the "National Business Plan 4.0" from 20% to 50% for investments made by 31 December 2022 (30 June 2023 if at least 20% is paid by 31 December 2022); and
• An increase in the tax credit for training expenses of employees in the technology sector under the "National Business Plan 4.0" from 50% to 70% for small enterprises and from 40% to 50% for medium enterprises.

Lastly, during a press conference following the meetings, it was announced that the measures will be financed by increasing the extraordinary solidarity contribution (windfall profits tax) on energy companies. The tax rate is to be increased from 10% to 25%.

The Decree-Law for these measures has not yet been published in the Official Gazette but is expected in the near future. Additional details will be published once available.