Italy’s finance minister defends 42% crypto capital gains tax plan
Giancarlo Giorgetti, the Italian Minister of Economy and Finance, has defended a proposal to raise the capital gains tax on cryptocurrencies like Bitcoin to 42%. Speaking at a World Savings Day event on October 31, he highlighted the inherent risks associated with digital assets, which justified the tax increase. The Italian Council of Ministers plans to raise the withholding tax from the current 26% to the new proposed rate. This adjustment is still under review by Italian lawmakers, with some, like Giulio Centemero, expressing concerns that taxing crypto could be counterproductive and calling for further deliberation. The government projects that the new tax rate could generate approximately $18 million annually. Italy, as a member of the EU, will also be subject to the Markets in Crypto-Assets (MiCA) framework established by EU lawmakers, which aims to address various regulatory concerns in the crypto space but does not directly impact the ability to tax cryptocurrencies.
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