Italy trims proposed 42% digital asset tax
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Homepage > News > Finance > Italy trims proposed 42% digital asset tax Italy is watering down its proposed exorbitant digital asset taxes following an uproar from some lawmakers and the ‘crypto’ sector. The Italian government proposed hiking the capital gains tax on digital asset holders from the current 26% to 42% as part of Prime Minister Giorgia Meloni’s administration’s efforts to raise government revenues in Europe’s fourth-largest economy. Announcing the plan, Deputy Finance Minister Maurizio Leo said the taxes were necessary as “the phenomenon [digital assets] is growing” in Italy. However, some lawmakers—including a section of the ruling coalition, Fratelli d’Italia—opposed the taxes, which they claimed could burden traders heavily and crash the nascent sector. These lawmakers proposed a counteroffer that caps the digital asset taxes at 28%, and according to Bloomberg, Meloni’s government is set to accept the offer. The counteroffer was made by legislators from Lega, a populist right-wing party that’s part of the ruling coalition. They also called for a new working group comprised of VASPs and consumer associations to spread awareness about digital assets in Italy. Sources with insider knowledge told Bloomberg that the government will likely approve the proposals. Another faction is calling for the digital asset taxes to be scrapped altogether. This group, which mainly consists of members of Forza Italia, another party in the ruling coalition, believes that the move would foster adoption and spur the economy. Currently, Italy exempts digital asset taxes on gains of $2,120 or less. “We believe that such a tax hike isn’t right. Going from 26% to 42% has a reason that isn’t widely understandable by anyone, whether that be a normal citizen or a large investor,” stated Paolo Barelli, the Forza Italia whip in the lower chamber of Parliament. The ruling coalition remains open to new proposals on…
Filed under: News - @ November 27, 2024 10:17 am