The Italian government is considering reducing its proposed tax increase on crypto transactions from 42% to 28%.
This change is a result of Prime Minister Giorgia Meloni’s coalition showing interest in addressing concerns raised by industry executives and supporting the country’s growing digital asset sector.
The current tax rate on crypto in Italy is 26%, and it would have been raised to 42% originally in October’s budget plan for financial purposes.
However, the proposed steep tax rate has sparked worries about Italy’s competitiveness among other countries, particularly as the European Union prepares to introduce comprehensive crypto regulations through the Markets in Crypto-Assets framework later this year.
In response, the junior party in Meloni’s coalition, the League, has suggested a 28% limit to balance the need for revenue and industry growth.
