Frequent or unexpected changes in the taxation of Italy's financial system increase uncertainty and affect the investment decisions of market participants, the Bank of Italy said on Thursday, commenting on the government budget for next year. Italy plans to collect €5.9 billion ($6.5 billion) from the financial sector to help fund planned tax cuts and spending hikes in 2027. "The higher tax rate affects sectors with solid earnings and financial positions. However, this does not diminish the importance of a stable and predictable regulatory framework," representatives from the central bank told parliament.