Italy minister open to reviewing tax hike on cryptocurrencies

Rome: Italy’s economy minister said on Thursday he was ready to review proposals to raise a tax on cryptocurrency capital gains, after pressure from some lawmakers in his own party to drop the plan.

“I am willing to consider different forms of taxation for people who keep investments in their portfolio,” Minister Giancarlo Giorgetti said.

Under the 2025 budget, to be approved by parliament by end-December, the Treasury intends to hike taxation on capital gains from cryptocurrency such as bitcoin to 42 per cent from 26 per cent.

The move is expected to net an additional 16.7 million euros ($18.03 million) per year from the current 27 million euros.

Despite the relatively small level of revenue the measure would generate in a country with total budget spending topping 800 billion euros, it has triggered criticism from within Giorgetti’s own League party.

Lawmaker Giulio Centemero has said that such a tax hike would be “counterproductive” and called for an in-depth dialogue with market players over the issue. “Speculation should be taxed more,” Giorgetti said.