Italy’s Government Revises Crypto Tax Proposal Amid Criticism
Italy’s government recently announced plans to adjust a proposed tax increase on crypto capital gains after facing backlash from industry stakeholders and internal disagreements within the ruling coalition. The initial proposal, part of the 2025 budget, aimed to raise the tax rate on crypto gains from 26% to 42% to generate additional revenue.
However, lawmakers from the co-governing League party, Giulio Centemero and Treasury Junior Minister Federico Freni, confirmed that the increase would be significantly reduced during parliamentary discussions. The revised budget proposal, which includes a softened stance on crypto taxation, is set to be finalized and presented to parliament for approval by the end of December.
Economic Impact
Critics of the proposed tax hike raised concerns that it could drive crypto investors and businesses into the shadow economy, leading to a lack of transparency and hindering economic growth. Centemero and Freni emphasized the need for balanced regulation that encourages innovation and market participation rather than discouraging it.
Divisions in Ruling Coalition
Economy Minister Giancarlo Giorgetti initially supported the tax hike as a way to generate around €16.7 million annually for public finances. However, members of his own party resisted the proposal, sparking debates within the government. The League party, known for its pro-business stance, argued that a less aggressive approach aligns better with Italy’s economic goals and competitiveness, urging a strategic rethink of the policy.
In conclusion, Italy’s government is navigating the delicate balance between fiscal responsibility and supporting the growing digital asset industry. The revisions to the proposed crypto tax increase reflect the need to foster innovation and maintain a competitive edge in the evolving landscape of cryptocurrencies.
