The Italian government is reportedly considering a smaller increase to its capital gains tax on cryptocurrencies, aiming for a 28% rate instead of the previously discussed 42%.
According to a Bloomberg report dated Nov. 12, the administration under Prime Minister Giorgia Meloni is inclined to support a 28% crypto tax rate, which represents a modest 2% increase from the current rate of 26%, rather than the 16% jump initially floated. Economy and Finance Minister Giancarlo Giorgetti defended the proposed adjustment in an Oct. 31 statement, underscoring the government’s intent to regulate the growing digital asset market without excessive burdens.
The reason behind Italy’s reduced tax proposal remains unclear. However, recent political shifts in the U.S., where many crypto-friendly candidates secured election victories, may have contributed to a more cautious approach. The market has seen a notable rise in cryptocurrency prices following these U.S. election results, indicating optimism within the digital asset space.
In early 2023, Italy had already raised the capital gains tax on crypto holdings above 2,000 euros to 26%, as part of broader fiscal measures. The initial 42% proposal was projected to generate approximately $18 million annually, while the revised 28% rate is likely to bring in a smaller revenue boost.
The updated proposal still requires further debate and approval by Italian lawmakers. On Oct. 16, Giulio Centemero, a member of Italy’s Chamber of Deputies, shared on X (formerly Twitter) that he believes taxing crypto at high rates could be “counterproductive,” advocating for more dialogue before finalizing the tax policy.
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