Italy Tax Evasion Rises to €112.8 Billion in 2023, Treasury Report Shows

Italy's unpaid taxes and social contributions rose by more than €7 billion ($7.87 billion) in 2023 from 2022, reaching between €107.9 billion and €112.8 billion, according to a Treasury-appointed commission report released October 6, 2026. The data raises questions about Rome's ability to address chronic tax evasion as public debt is projected to peak at 138.5% of GDP next year. Prime Minister Giorgia Meloni has favored cooperation over crackdowns since taking office in 2022, offering 12 tax amnesties in her first budget and raising the cash payment limit to €5,000 from €1,000. The report revised upward evasion estimates for 2019-2022. Italy's tax evasion propensity fell 0.2 percentage points annually in 2023 to 17.3-17.5%, though VAT evasion rose to 20.4% from 19.4%. Experts recommend measuring evasion as a ratio of unpaid to total taxes owed, given absolute increases partly reflect post-COVID recovery and inflation.