Italy to Reduce Proposed Cryptocurrency Tax Increase
ROME (Reuters) - Italy will scale back plans to increase taxes on cryptocurrency capital gains, ruling politicians said on Tuesday, following criticism from the affected industry and rows within the party of the economy minister.
"The tax increase will be significantly reduced during the parliamentary work," lawmaker Giulio Centemero and Treasury Junior Minister Federico Freni, both from the co-ruling League party, said in a statement.
Under the 2025 budget, to be approved by parliament by the end of December, the Treasury intended to hike taxation on capital gains from cryptocurrency such as bitcoin to 42% from 26%.
But the League said that such a move would risk boosting the shadow economy.
"No more prejudices about cryptocurrencies," Centemero and Freni said.
Political sources said the government might even decide to leave the 26% rate unchanged.
(Reporting by Giuseppe Fonte; Editing by Mark Porter)
