According to PANews, Italy's ruling party announced on Tuesday that it will scale back its plan to increase the capital gains tax on cryptocurrencies following criticism from affected industries and internal debate within the Ministry of Economy. Giulio Centemero, a member of the coalition party, and Federico Freni, the Deputy Minister of Finance, stated in a joint declaration that the proposed tax hike will be significantly reduced during parliamentary discussions.
Initially, the Ministry of Finance intended to raise the capital gains tax rate on cryptocurrencies like Bitcoin from 26% to 42% as part of the 2025 budget, which is expected to receive parliamentary approval by the end of December. However, the coalition party expressed concerns that such a move could encourage the growth of the shadow economy. On Tuesday, Centemero and Freni urged against harboring biases towards cryptocurrencies. Political insiders suggest that the government might even opt to maintain the current 26% tax rate.