cryptojournalist
The Italian government is reportedly rethinking its planned tax increase on cryptocurrency gains. Instead of the originally suggested 42%, Italy might go with a 28% tax rate on crypto profits, according to a Bloomberg report.
Why the Tax Proposal Changed
This comes after Italy’s 2023 budget plan introduced a 26% capital gains tax on crypto earnings over 2,000 euros. The higher tax rate proposal aimed to bring in about $18 million a year. However, the revised plan, now potentially set at 28%, would likely raise less.
Mixed Reactions Among Politicians
Economy and Finance Minister Giancarlo Giorgetti has defended the tax hike, but not everyone agrees. Giulio Centemero, a member of Italy’s Chamber of Deputies, voiced concerns, saying heavy crypto taxes might backfire and urging for more discussion.
Impact of Global Crypto Trends
The tax revision could also reflect global crypto trends. After pro-crypto candidates won in recent U.S. elections, digital asset prices surged. Italian lawmakers still need to review and approve the new tax rate before it’s finalized.
