Crypto watchers and investors in Italy have received encouraging news: Prime Minister Giorgia Meloni’s government is considering a watered-down tax hike. From the initial proposal of 46%, which was announced last second week of October, the Italian government is currently re-evaluating the plan to limit the increase “to just 28%”.
According to multiple reports, the League, a member of Meloni’s coalition, has recommended an amendment to the tax rate. This amendment aims to balance the country’s revenue generation and the policy of attracting local and international investors. Italy’s current levy is 26%.
Tax Hike On Crypto – A Plan To Cut Fiscal Deficit
Italy’s plan to hike taxes on crypto capital gains was first announced on October 16th, 2024. Deputy Finance Minister Maurizio Leo states that the government aims to raise crypto taxes from 26% to 42%. Leo said the cabinet approved the proposal because the “Bitcoin phenomenon” is spreading. The proposal comes as the Italian government strengthens its digital services tax to boost revenues in 2025.
Italy’s Crypto Tax Drama: Possible Relief in the Works
Looks like Italy might backtrack on its original plan to hike crypto capital gains tax to a whopping 42%.
Instead, the government is considering lowering it to 28%, following backlash from lawmakers and the crypto… pic.twitter.com/YE8CCjlyX7
— IBC Group Official (@ibcgroupio) November 13, 2024
A few weeks after the initial announcement, the Italian government has backtracked and now considers a much lower target hike of 28%. Many market analysts and industry stakeholders have expressed concerns about the steep tax hike.
According to analysts, this proposed increase may hurt the country’s competitiveness, especially now that the European Union is preparing to intr
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Author: Christian Encila
