Italy Reduces Proposed Crypto Tax Hike to 28%: A Boost for the Digital Asset Sector
Italy’s government is reevaluating its approach to taxing cryptocurrency trades, reducing the initially proposed tax hike from a hefty 42% to a more manageable 28%. This potential adjustment reflects a shift in Prime Minister Giorgia Meloni’s coalition, which seems interested in supporting Italy’s growing crypto industry.
Initially introduced in October’s budget plan, the tax proposal aimed to increase the current 26% tax on crypto transactions to 42%, intending to boost public finances. However, the proposal met resistance from crypto industry leaders, who argued that such a significant increase could undermine Italy’s competitiveness, especially as the European Union prepares to introduce comprehensive crypto regulations under the Markets in Crypto-Assets (MiCA) framework later this year.
The League, a junior partner in Meloni’s coalition, advocated for a 28% tax cap, aiming to strike a balance between generating public revenue and promoting industry growth. Forza Italia, another coalition partner, suggested a more investor-friendly approach, proposing no tax increase on crypto gains under €2,000 to encourage local participation in the digital asset market without burdening smaller investors.
This shift could signal a strengthening of Italy’s crypto sector as the country aims to create a more favorable environment for investors.