The Italian government is considering raising the capital gains tax on Bitcoin investments. The capital gains tax on Bitcoin transactions exceeding 2,000 euros has been raised to 26% in 2022 and is currently raised to 42%. Maurizio Leo, Deputy Minister of the Italian Ministry of Economy, mentioned at a press conference at Palazzo Chigi on October 16 that this new measure is part of Italy’s new budget and has been approved by the cabinet. In addition, Italy also plans to Remove the minimum revenue threshold for the Digital Services Tax (DST) and expand its applicable scope.

Bitcoin capital gains tax raised to 42%, DST revenue threshold removed

Leo said that the capital gains tax on Bitcoin investment will be raised from the current 26% to 42%, aiming to strengthen the supervision of crypto asset transactions through tax reform, thereby increasing government revenue.

Leo further said that the new budget will remove the minimum revenue threshold for the digital services tax. The Digital Services Tax (DST), which has been in effect since 2019, currently applies to companies with annual revenue of at least 750 million euros (about 817 million U.S. dollars) and at least 5.5 million euros (about 5.9 million U.S. dollars) in revenue in Italy. This threshold will be lifted later to bring more digital service companies into the scope of taxation.

Italy taxes banks and insurance industry to raise 3.5 billion euros to improve health care and vulnerable groups

The Italian government recently approved a 30 billion euro (approximately US$33 billion) budget for 2025, part of which will come from taxes on banks and insurance companies. According to Italian Prime Minister Giorgia Meloni, Italy is expected to raise 3.5 billion euros through the new budget to strengthen public services and assist disadvantaged groups. Meloni emphasized that the new budget will not increase personal tax burdens, and the funds will mainly be used to improve medical and vulnerable groups' services.

Source: Italian Prime Minister Meloni tweeted

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