Lawrence Damilola
The Italian government is planning to increase the capital gains tax on Bitcoin from 26% to 42%, according to Deputy Economy Minister Maurizio Leo.
Speaking at a news conference today, Leo explained that the change is part of the country’s budget bill approved by the Council of Ministers. This proposed tax increase would apply to profits made from Bitcoin investments.
Leo stated, “On capital gains from Bitcoin, the withholding tax increases from 26% to 42%.” According to him, the government’s goal is to revise tax policies related to digital assets and generate additional revenue for the state budget.
Italy’s Elimination of Revenue Threshold for Digital Services Tax
Along with changes to the taxation of Bitcoin, Italy also plans to remove the revenue thresholds for Italy’s Digital Services Tax (DST). Currently, the DST applies to companies generating at least €750 million ($817 million) globally and €5.5 million ($5.9 million) from digital services within Italy. The removal of these thresholds is aimed at expanding the scope of the tax to more digital businesses operating in the country.
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Leo commented on this change, saying, “On web tax revenues, we are working to eliminate the ceiling of 750 million euros and 5 million in Italy, therefore we are eliminating the thresholds.” This adjustment would bring more companies under the DST’s regulatory scope, ensuring they contribute to the national budget.
The announcement of the proposed tax increase came as part of Italy’s broader plan to fund a €30 billion ($33 billion) budget for 2025. This budget is designed to fund public services and social programs, with part of the revenue coming from a levy on Italian banks and insurance companies. The government expects to raise €3.5 billion ($3.8 billion) from these sectors.
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Prime Minister Giorgia Meloni emphasized the government’s intent, stating on yesterday that the raised capital would be used to improve healthcare services and help vulnerable citizens. “As we promised, there will be no new taxes for citizens,” Meloni wrote on X, referring to the strategy of financing social programs without introducing additional taxes on the general public.
The proposal to raise the Bitcoin capital gains tax comes as the European Union prepares to fully implement its crypto regulations under the Markets in Crypto-Assets (MiCA) framework by the end of 2023.
LAWRENCE
Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.
