In October, the Italian government, through the Ministry of Economy and Finance (MEF), proposed to increase the tax on crypto capital gains to 42%.
If the measure had been definitively approved, it would have been the highest in Europe.
Such a decision had provoked a strong reaction from the Italian crypto sector, as it was rightly considered to be punitive for Italian investors, and the sector itself.
In Italy, there are more than a million people who have cryptocurrencies, and several companies that work specifically in the crypto sector.
The U-turn on crypto fees at 42%
It should be noted, however, that several political forces with that same majority supporting the government immediately moved to try to do something.
In fact, already at the beginning of November, there was a hard start in thinking about a possible change to the measure proposed by the MEF.
Yesterday, the honorable Giulio Centemero, from the Lega, announced on his official X profile that the Budget Committee of the Chamber of Deputies approved an amendment to the Budget Law specifically regarding taxes on capital gains crypto.
This change reduces the original rate of 42% included in the text of the 2025 Budget Law to 26% for 2025, while setting it at 33% for 2026. In addition to there, it eliminates the tax-free zone below €2,000, and introduces revaluation at 18%.
Centemero says that they will already from the next Milleproroghe order work on the 2026 level, to try to reduce it from 33%.
Now it will be up to the Chamber to approve or reject the amendment, but it seems that there is a favorable majority that includes all the forces of the government but also part of the opposition . This leads to the belief that approval of this change is far more likely than rejection.
Who wanted to increase crypto fees to 42%
The very strange thing is that there does not seem to be anyone for such an increase.
Therefore, the question arises independently: who wanted it?
Apparently, it wasn't the government, because it is the only one who now wants to get rid of him.
It was not even the forces of the majority, because the three main parties that support the government (FdI, Lega, and FI) are opposed.
The measure was developed and included in the text of the draft law for the 2025 budget by the ministry. It was also clearly announced at a press conference by Deputy Minister Leo, a member of FdI (Minister Giorgetti is from the Lega).
So only the MEF was in favor, and almost everyone else, including the opposition, was largely against it.
According to what was published by the honorable Centemero, that regulation was inserted into the text of the proposal of the bill with an unspecified external subject.
Although there is no certainty yet, the most circulating opinion is that the proposal to introduce the increase to 42% of taxes on crypto capital gains in Italy was made by the same a state agency that has continuously attacked cryptocurrencies for several years now.
The comments
Many representatives of the main Italian companies that provide crypto services have been satisfied with this result, and they have also congratulated those politicians who responded to their appeal and then work to solve the problem.
Although in theory it is still not 100% certain that the promotion will be eliminated, it is now very unlikely that the change will not be eliminated.
In particular, the Italian CEO of Binance, Gianluigi Guida, said that the decision to keep the 26% tax on capital gains from crypto-assets can ensure, although within certain limits, that there will be continuity of operation in a rapidly changing sector, without limitation. growth opportunities in the Web3 ecosystem.
He said:
“I want to express our gratitude to the Italian Institutions and their representatives, who have committed to finding a balance aimed at not hindering innovation. As a result of their efforts, it has been possible to start a constructive dialogue, which we are confident will lead to the identification of solutions that will support the long-term growth of the sector”.
Guida also points out that with the movement of the main Italian crypto groups that have begun to engage in dialogue with government forces, they have shown openness towards Web3 from Italian institutions, which have been popular open, transparent and constructive discussions.
In fact, he said:
“We hope that this can be the starting point for an ever-increasing dialogue and cooperation with the institutions: our country has the ability to fully understand and embrace the possibilities for a future identify with digital, positioning itself as a promoter of technological innovation and blockchain”.
However, he also expressed concern about the planned increase to 33% of the rate starting from 2026, also because it would introduce a tax difference compared to other types of similar investment, and would be in the risk of jeopardizing Italy's competitiveness in this sector, contributing to the brain drain abroad.
So the game is not closed yet.
Source: https://en.cryptonomist.ch/2024/12/18/the-italian-government-changes-its-mind-no-42-crypto-taxation/
