The Italian government is considering increasing the capital gains tax for investments in Bitcoin to 42% from 26%, according to Deputy Economy Minister Maurizio Leo.
Speaking at a news conference at Palazzo Chigi on Oct. 16, Leo commented on Italy’s new budget bill, which the Council of Ministers approved.
The minister said the withholding tax on Bitcoin (BTC) capital gains should rise to 42% according to the budget bill.
Deputy Economy Minister Maurizio Leo at a news conference on Oct. 16. Source: YouTube
Italy plans to remove the minimum revenue for Digital Services Tax
Leo also said that the bill would remove the minimum revenue requirement for Italy’s “web tax,” or the Digital Services Tax (DST), which was introduced as part of the country’s budget in 2019.
The DST now applies to companies that generated at least 750 million euros ($817 million) in the past calendar year and at least 5.5 million euros ($5.9 million) in revenue from operating digital services in Italy.
The minister said:
“On capital gains from Bitcoin, the withholding tax increases from 26% to 42%. On web tax revenues we are working to eliminate the ceiling of 750 million euros and 5 million in Italy, therefore we are eliminating the thresholds.”
Italy approves tight budget funded by levy on banks, insurers
The news came as Italy’s government approved a 30 billion euro ($33 billion) budget for 2025, which would be partly funded by a levy on Italian banks and insurers.
According to an Associated Press report, the new budget measures have yet to receive a nod from the Italian parliament. A final vote is expected by the end of the year.
On Oct. 15, Prime Minister Giorgia Meloni announced that the Italian government is expected to raise 3.5 billion euros from banks and insurance companies to improve public services and help the most vulnerable citizens.
“As we promised, there will be no new taxes for citizens,” Meloni stated in an X post on Oct. 15, adding that the raised capital will be directed to “healthcare and the most vulnerable to ensure better services.”
As previously reported by Cointelegraph, Italy’s Senate increased the capital gains tax on crypto asset trading over 2,000 euros to 26% in late 2022 as part of its approved budget for 2023.