The Italian government is reconsidering its plan to hike the capital gains tax on cryptocurrencies, opting for a lower rise than originally suggested.
Italy is reducing its intentions to increase taxes on bitcoin revenues. Instead of the previously recommended 42% tax rate, the administration is now considering a 28% rise. Negotiations within Prime Minister Giorgia Meloni’s office led to this revision, and although the final decision is still pending, we expect the tax increase to be significantly smaller than previously anticipated.
The proposed tax adjustment would raise the capital gains tax from 26% to 28%, a 2% increase instead of the 16% previously planned. This new tax proposal attempts to assist Italy in recovering from its economic issues, but it is unclear why the government chose to minimize the increase. The cryptocurrency market has seen a surge in recent months, which could influence the shift in approach.
Critics of the increased tax rate claim that it will reduce Italy’s competitiveness in the European Union, particularly when other nations implement more favorable policies for digital assets. While the tax increase requires legislative approval, the administration is also considering forming a working group to educate the public about cryptocurrencies and related ventures.
