The Italian government has scaled back its initial plans to raise the capital gains tax on cryptocurrencies, proposing a new rate of 28% instead of the previously considered 42%. According to sources familiar with the decision, Prime Minister Giorgia Meloni’s administration is reportedly leaning toward accepting the 28% rate, slightly above the current 26% rate, which was introduced as part of Italy’s 2023 budget plan.
This decision to lower the proposed hike is somewhat unexpected, as the government had defended the 42% tax increase as recently as late October. While the exact reason behind the shift remains unclear, some speculate that recent gains in cryptocurrency markets, spurred by pro-crypto sentiment following the U.S. election, may have influenced lawmakers to reconsider a more moderate approach.
If approved, the new 28% tax rate would apply to crypto transactions exceeding 2,000 euros, but would raise considerably less revenue than the 42% rate, which was estimated to bring in around $18 million annually.
However, the proposal is still under review and requires approval from Italian lawmakers. Some officials, including Giulio Centemero, a member of the Italian Chamber of Deputies, have voiced opposition to the crypto tax, calling it “counterproductive” and urging further discussions before any final decision is made.
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