Italy’s finance minister defends 42% crypto capital gains tax plan

Italian finance minister Giancarlo Giorgetti spoke at the World Savings Day on Oct. 31, defending the government’s budget plan to increase taxes on digital assets.
Italian finance minister Giancarlo Giorgetti spoke at the World Savings Day on Oct. 31, defending the government’s budget plan to increase taxes on digital assets.

Giancarlo Giorgetti, the Italian Minister of Economy and Finance, has pushed back against critics of a plan to raise the country’s capital gains tax on cryptocurrencies like Bitcoin to 42%.

At a World Savings Day event on Oct. 31, Giorgetti said digital assets presented a “very high level of risk,” defending the government’s decision to change the capital gains tax. Italy’s Council of Ministers approved a budget bill to increase withholding taxes for Bitcoin (BTC) from 26% to 42%.

Cryptocurrencies, Taxes, Italy

Italian finance minister Giancarlo Giorgetti at World Savings Day on Oct. 31. Source: YouTube

The proposed tax hike is still subject to review and approval by Italian lawmakers before implementation. Giulio Centemero, a member of Italy’s Chamber of Deputies, said in an Oct. 16 X post that taxing cryptocurrencies would be “counterproductive,” calling for further discussion among lawmakers.  

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According to the proposed budget, the Italian government hopes to collect roughly $18 million yearly after raising the crypto tax rate. In 2023, lawmakers increased the capital gains tax on crypto trading for more than 2,000 euros to 26%, also as part of a budget plan.

MiCA set to go into effect

As a member of the European Union, Italy would still be subject to the Markets in Crypto-Assets (MiCA) framework passed by EU lawmakers and set to go into effect for crypto asset service providers in December. Though the regulatory framework will likely not affect a government’s ability to tax crypto, it aims to regulate stablecoin issuers, protect exchange users, and crack down on market manipulation. 

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