30s Summary

Italy’s finance official, Giancarlo Giorgetti, is pushing for an increase in the tax on cryptocurrency profits from 26% to 42%. Giorgetti argues the risky nature of digital assets justifies the hike. The proposal could generate $18 million annually for Italy. However, lawmaker Giulio Centemero opposes the idea, insisting it will cause more harm than good. While the plan is still subject to approval from Italian lawmakers, the country is preparing for new EU crypto regulations due in December.

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Giancarlo Giorgetti, Italy’s big shot in charge of finances, has stood strong in the face of critics who are against his plan to hike up the tax on profits made from cryptocurrencies like Bitcoin to 42%.

Speaking at an event celebrating World Savings Day on Oct. 31, Giorgetti justified the tax increase, citing the super risky nature of digital assets. He highlighted that Italy’s top decision makers approved a spending plan that includes bumping the Bitcoin tax from 26% to 42%.

But don’t panic! This tax hike is still only a proposal, and has to be agreed upon by Italian lawmakers before it’s put into action. Giulio Centemero, a key player in Italy’s decision-making squad, expressed his reservations on taxing cryptocurrencies on Oct. 16, arguing it’d do more harm than good, and called for a bigger chat among lawmakers.

According to this proposed spending plan, the Italian officials reckon they could bag around $18 million each year if they increase the crypto tax rate. In 2023, the lawmakers hiked the profits tax on crypto trading over 2,000 euros to 26%, as part of a budget plan too.

Even though Italy is part of the European Union, it still has to stick to new rules for crypto markets, like MiCA, set by EU lawmakers and due to kick off in December. While these rules may not impact how government taxes crypto, they aim to regulate the issuers of stablecoins, safeguard folks using crypto exchanges, and stop any market manipulation.

Source: Cointelegraph