According to a (Bloomberg) report, Italy plans to increase the capital gains tax rate on Bitcoin and cryptocurrency from 26% to 42% in order to raise funds to support expensive election promises while reducing the fiscal deficit.
Maurizio Leo, the deputy minister of the Italian Ministry of Economy, announced the news at a press conference announcing the 2025 budget. When talking about Bitcoin during a conference call on Wednesday, he pointed out that the reason why the Italian cabinet made this decision was: It’s because the “phenomenon” of Bitcoin trading is spreading.
The Italian government will introduce a cryptocurrency tax system starting from the 2023 tax year. All cryptocurrency capital gains exceeding 2,000 euros will be taxed at a rate of 26%.
Other countries have previously attempted to tax cryptocurrency transactions, with limited success. For example, after India imposed high taxes on cryptocurrencies two years ago, domestic trading volume plummeted, and investors turned to overseas platforms to avoid taxes.
"Taking action on "coin speculators"? Italy wants to increase “Bitcoin capital gains tax” to 42%. This article was first published on (Block Guest).
