Italian banks are already big tax payers, Mediobanca CEO says after windfall tax reports

MILAN (Reuters) -Mediobanca CEO on Thursday highlighted that Italy's banks are already big tax payers when asked about media reports on a possible new domestic tax on banks and insurance groups.

"Italian banks are major contributors to tax revenues," Mediobanca CEO Alberto Nagel told a media briefing when asked about the reports.

"Getting the banks to do well and to avoid creating negative perceptions is beneficial for everyone," he added.

Some Italian newspapers reported on Thursday that the government was discussing new taxes on banks, insurers, energy companies and luxury goods firms.

Shares in Italian domestic banks were down by about 3% early on Thursday, with lenders and automakers being among the worst performers in Europe.

Italy's largest bank Intesa Sanpaolo on Tuesday said its first half profits would translate into net tax payments of 3.1 billion euros ($3.34 billion) for the state.

In July, Economy Minister Giancarlo Giorgetti hinted at possible measures on the insurance sector, urging for reflection on a recent rise in insurance premiums coupled with healthy profits for Italian insurance companies.

A government source said on Thursday that Giorgetti would be in favour of initiatives agreed with insurance companies to cut premiums and help consumers.

A year ago Italy's conservative government sparked a major sell-off in banking shares by announcing a surprise 40% windfall tax on bank profits driven by higher interest rates.

The government later backtracked and gave lenders the option of increasing reserve buffers instead of paying the levy - resulting in virtually no money being raised through the windfall tax.

Italian financial institutions opted en masse to forgo the levy, setting aside at least 4.5 billion euros ($4.9 billion), or 2.5 times what the government could have raised from tax.

($1 = 0.9276 euros)

(Reporting by Gianluca Semeraro; editing by Valentina Za and Jane Merriman)