- Italy’s finance minister Giancarlo Giorgetti defended the government’s plan to increase the capital gains tax on cryptocurrencies like Bitcoin from 26% to 42%
- Giorgetti stated that cryptocurrencies present a “very high level of risk,” justifying the need for additional taxes
- The proposed tax hike is still subject to approval by Italian lawmakers, and is expected to generate around €18 million in yearly revenue for the government
Italy’s finance minister Giancarlo Giorgetti spoke at the World Savings Day on Oct. 31, defending the government’s budget plan to increase taxes on digital assets like Bitcoin from 26% to 42%.
Background
The proposed tax hike is still subject to review and approval by Italian lawmakers before implementation. Giulio Centemero, a member of Italy’s Chamber of Deputies, said in an Oct. 16 X post that taxing cryptocurrencies would be counterproductive, calling for further discussion among lawmakers.
According to the proposed budget, the Italian government hopes to collect roughly €18 million yearly after raising the crypto tax rate. In 2023, lawmakers increased the capital gains tax on crypto trading for more than €2,000 to 26%, also as part of a budget plan.
MiCA Regulation
As a member of the European Union, Italy would still be subject to the Markets in Crypto-Assets (MiCA) framework passed by EU lawmakers and set to go into effect for crypto asset service providers in December. Though the regulatory framework will likely not affect a government’s ability to tax crypto, it aims to regulate stablecoin issuers, protect exchange users, and crack down on market manipulation.
Conclusion
The Italian government’s plan to significantly raise capital gains taxes on cryptocurrencies has sparked some debate among lawmakers, though finance minister Giorgetti continues to defend the proposal. The incoming EU regulations present additional complexity as Italy determines its crypto tax policy. The budget bill remains subject to further review before potential implementation.
