Italy to Increase Bitcoin Capital Gains Tax to 42% Amid Crypto Growth
Italy plans to increase its capital gains tax on Bitcoin from 26% to 42%, as part of measures aimed at funding costly election promises while reducing the fiscal deficit. Prime Minister Giorgia Meloni’s government made the decision in response to the growing prevalence of cryptocurrency, according to Deputy Finance Minister Maurizio Leo, who discussed the change during a conference call on Wednesday.
Previous attempts by other nations to tax cryptocurrency trading have not always been successful in boosting government revenue. For example, India’s introduction of heavy taxes on digital assets two years ago led to a sharp decline in trading volumes, as investors shifted to offshore platforms to avoid the taxes.
The announcement of Italy comes as the European Union prepares to implement its comprehensive crypto regulations, known as MiCA, by the end of the year. Despite the tax hike news, Bitcoin saw a 1.8% increase by 12 p.m. in London on Wednesday, continuing its upward trend with a 17% gain over the past month.
