Italy lowers proposed crypto tax hike to 28%: report

Italy’s government is considering lowering its proposed tax hike on crypto trades, reducing the planned rate increase from 42% to 28%.

This shift comes as Prime Minister Giorgia Meloni’s coalition appears inclined to amend the tax proposal, which was initially part of October’s budget plan, to support the country’s growing digital asset sector, according to Bloomberg.

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Italy’s steep crypto rate increase

Currently, crypto transactions in Italy face a 26% tax, but officials had proposed raising this to 42% to boost public finances. 

Crypto industry executives, however, voiced concerns, arguing that such a steep tax rate could harm Italy’s competitiveness, especially as the European Union prepares to roll out comprehensive crypto regulations under the Markets in Crypto-Assets framework later this year.

The League, a junior party in Meloni’s coalition, proposed the 28% limit to balance the need for public revenue with industry growth, according to Bloomberg.

Forza Italia, another coalition partner, suggested eliminating the tax hike entirely for gains under €2,000 to encourage local participation in cryptocurrency without imposing heavy taxes. Both amendments aim to create a more favorable environment for Italian crypto investors.

This adjustment could strengthen Italy’s crypto market as other countries experiment with their own tax policies.

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