ROME (Reuters) - Italy's new government will raise taxes on banks to help finance increased spending on law and order and fulfil its promises to cut or eliminate some taxes, government sources said on Friday.

Silvio Berlusconi's administration has promised that among its first measures it will scrap taxation of primary residences, reduce taxation of overtime wages and approve a package of measures to crack down on crime.

These steps will cost between 4 billion euros ($6.2 billion) and 6 billion, two sources said. One said the money would be found partly through "soft" tax hikes on banks.

Another said the intervention on banks would probably involve the regional corporate tax, IRAP.

There are no immediate plans to increase taxation of oil companies, as some media had reported, one source said.

Banking shares hardly reacted.

By 1340 GMT, shares in Italy's biggest retail bank Intesa Sanpaolo (ISP.MI: Quote, Profile, Research) were down 0.3 percent, its major rival UniCredit (CRDI.MI: Quote, Profile, Research) had lost 0.6 percent, while Banca Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research) was down 0.1 percent.

Milan's overall index was up 0.7 percent as the DJ Stoxx index of European banks was off 0.1 percent.

(Editing by David Holmes)