Italy is also preparing to accept the crypto-assets regulations of the European Union Market and the news of tax increase comes at the same time.
However, there is no effect on Bitcoin price after the news flooded over the internet.
Also, there is no clarity regarding the time when the new tax will be put into action.
Italy is thinking of increasing the capital gains over crypto to 42%. The decision has come in order to chop off the fiscal deficit.
Bloomberg, a media outlet has reported that, “The country will also increase two-fold tax for the Bitcoin holders as the officials are planning to increase the capital gains tax over crypto from 26% to 42%.
On Wednesday, in a conference call, the deputy finance minister of Italy, Maurizio Leo stated that the government is trying to cope up with the expansion of crypto usage that is occuring at a faster pace. He also mentioned that the event is growing quickly. However, there is no clarity regarding the time when the new tax will be put into action.
Italy to adopt European Union Market Crypto-assets regulation
Apart from Italy, there are many countries who are approaching crypto taxation. Other developing countries such as India are also facing the same issues, as a result the local trading volumes have slid down and the investors have also shifted to the offshore markets.
A reliable media source has reported that 30% tax is imposed over crypto trading as well as mining profits in India. A tax over Staking income is also imposed even though it stems from the personal income tax slab of a person, as it certainly offers a lower rate.
Italy is also preparing to accept the crypto-assets regulations of the European Union Market and the news of tax increase comes at the same time. The adoption of the regulation can happen anytime before the beginning of the new year. There are speculations that the steps taken by the country will help in changing the crypto landscape in Italy.
In July this year, the governor of Bank of Italy, Fabio Panetta, gave suggestions to MiCA which incorporates laws for e-money tokens as well as asset-referenced tokens that may be incompatible with the existing law of the country. He has also given hints at the particular execution of these laws.
Some of the experts believe that the raise in the tax in Italy can offer legal loopholes and it will certainly face challenges in the constitutionality.
Bitcoin price remains unaffected
However, there is no effect on Bitcoin price after the news flooded over the internet. At the press time, Bitcoin was priced at $67,217, down by 0.70% on the day. Throughout the week, Bitcoin has gone over by 7.9%, and the level has not been witnessed since the end of July this year.
The all-time high of around $73,835 has been hit by the crypto currency in March and it is about 9.5% low as compared to that.
