The Italian government is considering increasing the capital gains tax on Bitcoin from 26% to 42%, according to Deputy Economy Minister Maurizio Leo. 

During a press event on October 16th at Palazzo Chigi, Leo discussed the government's budget proposal, which has been approved by the Council of Ministers.

The proposed increase in the capital gains tax on Bitcoin is part of the broader budget plan for 2025. 

In addition to this change, the government is proposing to eliminate the minimum revenue requirement for Italy’s Digital Services Tax (DST). 

Currently, the DST applies to companies that generate at least 750 million euros in global revenue and 5.5 million euros in revenue from digital services in Italy. The new proposal would remove these thresholds.

Leo explained that the capital gains tax on Bitcoin would rise to 42% and that the revenue thresholds for the DST would be eliminated under the new legislation.

The tax adjustments are included in Italy’s budget plan, which totals 30 billion euros. This plan is expected to be partially funded by a levy on banks and insurance companies. 

On October 15th, Prime Minister Giorgia Meloni announced that the government expects to raise 3.5 billion euros from financial institutions, with the funds intended to improve public services and provide support to vulnerable citizens. 

Meloni stated that there would be no new taxes on individual citizens, and the funds raised from banks and insurers would be directed toward healthcare and services for those in need.

In 2022, Italy’s Senate approved a 26% capital gains tax on crypto trading exceeding 2,000 euros as part of the 2023 budget.

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