Italy’s economy minister said Thursday that he is willing to reconsider a proposed capital gains tax hike on cryptocurrencies. The move came in response to pressure from lawmakers from his own party, who urged him to abandon the plan.
“I am willing to consider different forms of taxation for people who hold investments in their portfolio,” – Minister Giancarlo Giorgetti said, according to Reuters.
The Treasury plans to raise the capital gains tax on cryptocurrencies such as bitcoin from 26% to 42%, according to the 2025 budget. Parliament aims to approve the budget by the end of December.
Italy’s Council of Ministers has given the green light for a tax increase on cryptocurrencies
Italy’s Council of Ministers has approved this new tax, which aims to use profits from investments to bolster the economy, according to local reports.
TheUK is also exploring similar changes, with Chancellor Rachel Reeves reportedly considering raising the capital gains tax on digital assets.
The Italian government intends to raise revenue with this tax increase to support initiatives for families, youth and businesses, while addressing fiscal deficits. This move is also in line with the upcoming adoption of the Markets in Crypto-Assets (MiCA) regulation, which aims to create a uniform regulatory framework for digital assets across the EU.
Italian lawmaker criticizes proposed tax increase
Reuters reported that the tax rate increase has sparked opposition within the party. Lawmaker Giulio Centemero criticized the decision as “counter-productive” and called for a thorough discussion with market participants on the issue.
Italy has historically lagged behind countries such as the UK and Germany in terms of cryptocurrency activity. However, they have recently seen a surge in cryptocurrency users, with estimates indicating that more than 3.6 million Italians are actively using digital currencies.
This growth is driven not only by speculative investments, but also by practical cryptocurrency transactions, indicating a wider acceptance of digital currencies as a legitimate financial tool.
