In a recent statement, Italy’s Economy Minister Giancarlo Giorgetti defended a proposed 42% increase in capital gains tax on cryptocurrency.
The news initially shocked the European cryptocurrency community, as the rate will substantially jump from the current rate of 26%. If Italian regulators approve the proposed rate of 42% in the 2025 budget, Italy would have the highest capital gains tax on cryptocurrency in Europe.
Readwrite reported that the Deputy Finance Minister made the initial announcement that rocked the European crypto scene.
Italian Economy Minister defends proposed crypto tax hike
At a World Savings Day conference, Giorgetti defended his stance and that of the current Italian government.
Addressing the audience at the event, Giorgetti said cryptocurrency and digital assets present a “very high level of risk.” He reiterated the need for tighter regulations and bolstered the party’s stance on the tax hike.
“We are completely changing the way the Italian public administration works,” said Giorgetti in a recent Financial Times article, and his endorsement of the proposed tax shows that the current far-right government is showing no signs of slowing down its intentions to make sweeping changes.
He continued, “We are trying to construct a regulatory framework that is certain for investment.
Deputy Economy Minister Maurizio Leo initially announced the increase in early October (2024), saying, “Since this phenomenon is spreading, we expect an increase (in Capital Gains) from 26% to 42%.”
🇮🇹 Italy's Deputy Finance Minister Maurizio Leo announcing their plan to increase capital gains on Bitcoin from 26% to 42% because "the phenomenon is spreading." 😮 pic.twitter.com/H3ebBE1rPP
— Bitcoin News (@BitcoinNewsCom) October 16, 2024
Italy’s current government has imposed strict charges on banks and insurance companies, which will result in a proposed budget increase of £33 billion.
This was announced in August, and according to a Reuters report, it would result in a 40% tax on profits made by banking and lending institutions on higher interest rates. One cabinet source told the news agency that Italian Prime Minister Giorgia Meloni’s government hoped to “punish bankers.”
Image: MEF_GOV.
