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Italy eyes 28% crypto tax amid revised proposal

Italy eyes 28% crypto tax amid revised proposal

GrafaGrafa2024/11/13 08:00
By:Mahathir Bayena

The Italian government is reportedly moving forward with a revised plan to increase the capital gains tax on cryptocurrencies to 28%.

This marks a step back from the previously discussed 42% rate.

According to a Bloomberg report citing unnamed sources, Prime Minister Giorgia Meloni’s administration appears inclined to accept the lower figure.

Giancarlo Giorgetti, Italy’s Minister of Economy and Finance, defended the 28% proposal as recently as October 31.

This new rate is an adjustment from the 26% increase initially considered.

The reason for scaling down from 42% is not explicitly clear, but recent market developments, including a surge in cryptocurrency prices following favorable outcomes for pro-digital asset candidates in the U.S. elections, might have influenced this decision.

In 2023, Italian lawmakers raised the capital gains tax on cryptocurrency transactions above 2,000 euros to 26%.

The initial 42% proposal aimed to generate approximately $18 million in annual revenue.

The anticipated revenue from the revised 28% tax is expected to be lower.

The proposed tax plan must undergo legislative review and approval before becoming law.

Giulio Centemero, a member of Italy’s Chamber of Deputies, voiced his concerns on October 16, noting that taxing cryptocurrencies could be “counterproductive” and called for a broader discussion on the subject.

Italy's decision to scale back its proposed tax hike highlights its effort to balance fiscal policies with the realities of the digital asset sector. 

This move reflects the government's approach to generating revenue while fostering an environment that supports cryptocurrency activities. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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