Italy has decided to scrap the Growth Decree tax benefit for football, with major ramifications for top sides like Inter Milan, AC Milan & Juventus.

This according to today’s print edition of Milan-based newspaper Gazzetta dello Sport, via FCInterNews. The newspaper notes that the wage bills for Italian clubs are set to increase as a result of the decision.

For several years, teams in Serie A have been able to benefit from the Growth Decree.

The policy is an economic incentive to bring foreign workers to Italy.

Essentially under the Growth Decree the tax rate on wages of certain eligible workers, are lower.

The ramifications for football have been significant. Teams in Serie A, particularly those at the top, have been able to make big name signings without spending as much as they otherwise would have.

In other words, clubs’ gross expenditures on the net wages of certain players from abroad has been lower.

For Inter, the signings of French international duo Marcus Thuram and Benjamin Pavard this summer has been an example of a team being able to apply the policy.

Meanwhile, the Nerazzurri’s city rivals AC Milan applied the Growth Decree to three of their summer signings. All of Christian Pulisic, Ruben Loftus-Cheek, and Tijani Reijnders arrived from abroad.

Juventus brought in US international Timothy Weah from Lille. And Roma signed the likes of Houssem Aouar and Evan N’Dicka on free transfers.

No More Growth Decree In Serie A – Ramifications For Inter, AC Milan & Juventus

According to the Gazzetta, the most recent meeting of the Italian government’s Council of Ministers has decided to adopt changes to the Growth Decree.

This decision will have plenty of ramifications. But specifically in football, the effects should be fairly clear.

The new policy will come into effect on January 1 of 2024.

However, it will also be applicable to any signings that clubs made during the fiscal year starting with July 1 of this year.

So for example, the policy change will be directly applicable to the wages of Thuram and Pavard.

Inter will have to pay more in taxes for the Les Bleus duo than they would have with the Growth Decree.

The same is true of any other players that teams in Serie A signed from July 1 onwards – such as Pulisic and Weah.

Meanwhile, the Gazzetta note that one notable player whose wages won’t be affected by the change is striker Romelu Lukaku. The policy had applied to the Belgian’s wages prior to July 1.

Therefore, it will be in effect until the end of the 2023-24 season, lowering what Roma will spend on his services.

But going forward, Italian clubs will be unable to apply the Growth Decree to player wages.

Therefore, the spending on the gross wages of players who arrive from other leagues will increase significantly.