The Council of Ministers of the country has given a thumbs up to this new tax proposal which targets at utilizing investment profits.
Italy has recently witnessed a growth in crypto users, with accounts displaying more than 3.6 million citizens of Italy who have engaged with virtual currencies.
A Canadian news agency has reported that increasing the tax rate has provoked backlash within the political party of Giorgetti.
The Italian Minister of Economy and Finance, Giancarlo Giorgetti announced on November 8, that he is prepared to consider the proposed tax hike on crypto capital gains once more. This step was taken as attornies from his party pressurized him by requesting him to not move forward with the plan.
Reuters, a news agency company has reported that Giorgetti stated, “I am thinking of considering various models of taxation for people who put their money in their portfolio.” The budget for 2025 includes some proposals such as treasury plans to increase the tax on capital gains from crypto, like Bitcoin, from 26% to 42%.
UK to follow Italy’s footsteps
The Parliament of Italy also targets to give the go-ahead to the budget by the end of this year. The Council of Ministers of the country has given a thumbs up to this new tax proposal which targets at utilizing investment profits. This will help in building up the economy, as reported by the local media.
Similar to Italy, the United Kingdom is seeking such changes. The Chancellor of the Exchequer, Rachel Reeves, is thinking of having an increase in capital gains taxes on virtual assets. The government of Italy is side by side targeting to improve revenue by this tax hike to back strategies for families, youth, and businesses, at the time of directing fiscal deficits.
At the same time, the step is lined up with the forthcoming adoption of the Markets in Crypto-Assets regulation (MiCA). This attempts to make a regular regulatory substructure for virtual assets across the European Union.
A Canadian news agency has reported that increasing the tax rate has provoked backlash within the political party of Giorgetti. The member of the Chamber of Deputies of Italy, Giulio Centemero has opposed the decision by referring it to as counterproductive. He has also asked the market participants to do an in-depth discussion over the matter.
Italy recently witnessed growth
It has been history that Italy has dragged itself behind several countries such as the United Kingdom and Germany in terms of the activities related to cryptocurrency. Meanwhile, a short time ago, the country witnessed a growth in crypto users, with accounts displaying more than 3.6 million citizens of Italy who have engaged with virtual currencies.
The growth is not only lifted by some risky investments but mainly it is driven by crypto transactions, giving an indication of virtual currencies as a legal financial instrument.