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Italy’s finance minister defended a proposal to increase the country’s cryptocurrency capital gains tax to 42%. The minister defended the potential increase by saying cryptocurrencies such as Bitcoin pose a “very high level of risk.”  Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, is defending a proposal to raise the country’s capital gains tax on cryptocurrencies to 42%. Giorgetti has received criticism from lawmakers in his own party but argues that their “very high level of risk” necessitates such an increase.  Italy to Raise Capital Gains Tax on Crypto by 62% The Italian government recently proposed to hike capital gains tax on cryptocurrencies such as Bitcoin from 26% to 42%. On 16 October, local news outlet Ill Sole 24 Ore reported that Italy’s Deputy Minister of Economy, Maurizio Leo, revealed the plans during a press conference on the 2025 budget. According to reports, the increase is part of a broader campaign to generate additional revenue to support families, young people, and businesses.  Despite pushback from members of his own party, Minister Giorgetti was firm in defending his decision to hike these taxes by 62%. During a Rome banking conference speech, Giorgetti explained that people must distinguish between investments that finance tangible projects and cryptocurrencies, stating that the latter’s value is wholly disconnected from underlying assets.  Minister Giorgetti was adamant in his decision, stating: “Cryptocurrencies present a very high level of risk.”  Intra-Party Disagreement Under the 2025 budget, which is still to be approved by parliament and remains subject to change, the hike will reportedly bring in an additional 16.6 million euros ($18.16 million) per year from the current 27 million euros. While the 62% increase would generate a relatively small level of revenue, the proposal has triggered criticism from within the Minister’s League party. Lawmaker and member of Italy’s Chamber…

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Filed under: News - @ November 2, 2024 2:17 am