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The Italian Army is one of the oldest military forces in the world. With a history that dates back to the days of pre-unified Italy, there exists many important dates and events where the Escercito Italiano is called up to help memorialize an event. During these special events, the Italian Army would have their soldiers dress up in ceremonial uniforms that were used for these engagements.
These leather belts are most certainly part of a parade or ceremonial uniform that would be worn in Italy by soldiers. The belt buckle is far too ornate and the belt is made to be more flashy than a traditional combat or pistol belt would be. You can envision a soldier wearing this belt as part of a finely tailored parade uniform, proudly supporting their unit's participation.