coinspress.com
Italy's government is considering a substantial rise in the capital gains tax on Bitcoin investments, proposing an increase from 26% to 42%, as announced by Deputy Economy Minister Maurizio Leo.
This discussion took place during a press conference on October 16 regarding the recently approved budget bill by the Council of Ministers.
Leo emphasized that the proposed budget would raise the withholding tax on Bitcoin profits significantly. In addition, it aims to eliminate the existing revenue thresholds for the Digital Services Tax (DST), which applies to companies with revenue above 750 million euros (about $817 million) and 5.5 million euros ($5.9 million) from digital services in Italy.
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The government’s budget plan, which totals 30 billion euros ($33 billion) for 2025, includes a levy on banks and insurance firms to help fund public services and assist vulnerable citizens. Prime Minister Giorgia Meloni assured on October 15 that no new taxes will be imposed on citizens, as the raised capital will focus on enhancing healthcare services.
This potential tax change follows the Italian Senate’s decision in late 2022 to increase the capital gains tax on cryptocurrency trading over 2,000 euros to 26% as part of the 2023 budget. The new budget measures will still need approval from the Italian parliament, with a final vote expected by year-end.