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This move came in response to pressure from lawmakers within his own party who urged him 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, according to Reuters.
Italy’s economy minister reportedly said on Thursday that he is willing to reconsider the proposed tax hike on crypto capital gains.
Parliament aims to approve this budget by the end of December.
The Treasury plans to raise the tax on capital gains from cryptocurrencies, such as bitcoin, from 26% to 42%, according to the 2025 budget.
He noted that a regulated market is needed to monitor these assets for fraud and manipulation.
Italy’s Council of Ministers approved this new tax aimed at using investment profits to strengthen the economy, according to local reports.
This move also aligns with the upcoming adoption of the Markets in Crypto-Assets (MiCA) regulation, which seeks to create a uniform regulatory framework for digital assets across the EU.
The Italian government aims to boost revenue through this tax hike to support initiatives for families, youth, and businesses, while addressing fiscal deficits.