The Italian government is considering revising its proposed whopping 42% tax on crypto gains, per sources familiar with the matter. According to a Bloomberg report, the government would likely approve a coalition partner’s proposal to reduce it to 28%.
Prime Minister Giorgia Meloni’s coalition, The League, has proposed the amendment to limit the mooted tax increase on crypto gains.
The government originally proposed a 42% tax on crypto capital gains, impacting Bitcoin investors and traders. Announced last month during the country’s 2025 budget presentation, the new tax reflects Italy’s efforts to leverage investment-based profits to support the economy. It was a significant increase from the existing 26%, which has existed since 2023.
However, last week, Italy’s economy minister noted that he is willing to revise the proposed tax hike. Minister Giancarlo Giorgetti noted that he would consider “different forms of taxation for people who keep investments in their portfolio.”
Further, a Reuters report said that the tax increase sparked backlash within Giorgetti’s League party. Italian lawmaker Giulio Centemero called the decision “counterproductive,” urging for thorough discussions with market participants.
The League’s Proposed Amendment to Crypto Tax
The coalition party proposed that the government establish a permanent working group. The group would comprise crypto firms and consumer associations and educate investors about crypto, the report added.
The proposal comes after crypto players argued that Italy’s tax slab on the asset class would make the local industry less competitive when compared to other EU nations. Meanwhile, the European Union is gearing up to fully adopt the Markets in Crypto Assets (MiCA) crypto regulations.
Besides the League’s proposal to water down the increase, another governing coalition party founded by the late Silvio Berlusconi, Forza Italia, sought an amendment to scrap the tax rise. The proposal, seen by Bloomberg, urged to remove an exemption from paying taxes on gains of €2,000 ($2,120) or less.
“We believe that such a tax hike isn’t right,” Paolo Barelli from Forza Italia said.
“Going from 26% to 42% has a reason that isn’t widely understandable by anyone, whether that be a normal citizen or a large investor.”
Sources noted that the government would likely consider the League proposal, though no final decision has been made yet.
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