Italy lowers proposed crypto tax hike to 28%: report 

The Italian government is considering reducing the proposed tax increase on crypto trading and reducing the planned rate increase from 42% to 28%.

The change comes as Prime Minister Giorgia Meloni’s coalition appears inclined to change the tax proposal, which was initially part of the October budget plan, to support the country’s growing digital asset sector, according to Bloomberg.

Italy’s sharp crypto rate rise

Currently, crypto transactions in Italy face a 26% tax, but authorities have proposed increasing this rate to 42% to boost public finances.

But crypto industry executives have expressed concerns, arguing that such a high tax rate could harm Italy’s competitiveness, especially as the European Union prepares to introduce comprehensive crypto regulations under its Crypto Asset Markets framework later this year.

According to Bloomberg, the League, a minor party in Meloni’s coalition, has proposed a 28% cap to balance public revenue needs with industry growth.

Another coalition partner, Forza Italia, has proposed eliminating the tax increase entirely for earnings under 2,000 euros to encourage local participation in cryptocurrency without imposing heavy taxes. Both changes aim to create a more favorable environment for Italian crypto investors.

This regulation could strengthen Italy’s crypto market as other countries experiment with their own tax policies.