In what is an important development for the country’s digital asset adoption, Italy has announced that it will reduce its proposed crypto tax limit to 28%. Indeed, Bloomberg reports that a new legal amendment will drop from the 42% that was initially proposed.
While a change is still a possibility, the report notes that Italian Prime Minister Giorgia Meloni is “likely to approve” the dropped tax increase on cryptocurrency trades. Currently, the levy stands at 26%, the report states, while crypto executives argued against the ramifications of the previously proposed increase.
JUST IN:
Italy to cap crypto tax at 28%, reducing it from the initially proposed 42%.
— Watcher.Guru (@WatcherGuru) November 12, 2024
Also Read: Top 3 Cryptocurrencies You Should Watch For This Bullrun
Italy Likely to Drop Crypto Tax Limit Increase From 42% to 28%
The digital asset industry has become a major talking point throughout 2024. In January, the United States approved the first crypto-based ETF in the country’s history. Now, amid the reelection of Donald Trump, Bitcoin surged to a record price of $89,000 this week.
Those realities have magnified the importance of the asset class. Moreover, they have increased the importance of nations to solidify their stance on its growing importance. In Italy, that has manifested in ongoing debates on its proposed capital gains tax on cryptocurrencies.
Also Read: Italy To Raise Capital Gains Tax On Bitcoin From 26% To 42%
Although it had previously proposed a 42% increase, a new report says that Italy is likely to reduce its crypto tax limit increase to just 28%. That figure is far less daunting, as the tax currently stands at just 26%. The amendment was issued this week and counters the proposal that was put forth in the country’s October budget.
Cryptocurrency executives in Italy had argued that the implications of the increase would be harsh on local industry. Indeed, the report notes that they warned officials ti would make Italian crypto businesses far less competitive. However, that looks to not be the case, with the amended increase looking to meet approval by the government.