The Italian government has decided to lower its proposed tax hike on cryptocurrency capital gains from 42% to 28%, according to a Bloomberg report. This move, reportedly backed by Italian Prime Minister Giorgia Meloni, comes as the country reconsiders its approach to taxing digital assets.
Italian Government’s Revised Crypto Tax Proposal
As reported on Nov. 12, sources familiar with the situation revealed that Italy’s government, led by Prime Minister Meloni, is prepared to accept a 28% tax rate on crypto gains. This adjustment is significantly lower than the initially proposed 42% and represents only a slight increase from the current 26% rate. Italian Minister of Economy and Finance Giancarlo Giorgetti defended the planned tax adjustments at the end of October, but details around the decision to lower the increase remain unclear.
The rollback of the proposed tax rate could reflect the changing global regulatory landscape. Recent political shifts in the United States, where several pro-crypto lawmakers won their elections, may have influenced Italy’s decision.
Background on Italy’s Crypto Taxation
In 2023, Italy introduced a 26% capital gains tax on crypto transactions over €2,000 as part of its budget plan. Initially, the proposed increase to 42% was expected to raise roughly $18 million annually for the government. With the rate now scaled back to 28%, the revised tax is expected to generate less revenue, though exact figures remain speculative.
Ongoing Debate Among Italian Lawmakers
Italy’s new tax proposal must still pass through legislative review before it can be implemented. Some lawmakers, such as Giulio Centemero from Italy’s Chamber of Deputies, have voiced concerns, with Centemero calling the crypto tax potentially “counterproductive” in an Oct. 16 post on X (formerly Twitter). He has encouraged further debate on the topic.
