Italy’s government announced plans to scale back a proposed tax increase on crypto capital gains following criticism from industry stakeholders and divisions within the ruling coalition, Reuters reported on Dec. 11.
Initial proposals, included in the budget for 2025, proposed a tax increase on cryptocurrency gains, from 26% up to 42%. This was a major jump intended to generate additional revenues.
On Dec. 10, both Giulio centemero, a lawmaker from the League, the party that shares the government, and Federico Freni junior minister of the Treasury confirmed the rise. “significantly reduced”The Parliamentary Deliberations
By the end of the month, the revised budget proposal will be completed and submitted to the parliament to receive approval. Legislators are under intense pressure to achieve a balanced approach between fiscal responsibility and the promotion of a supportive digital asset market.
Economic Impact
The critics of this proposed increase warned that the hike would drive crypto businesses and investors into the shadow economies, reducing transparency and economic development.
Centemero e Freni announced in a statement together that they would not allow the country to continue to accept “prejudices about cryptocurrencies”And called for balanced regulations that encourage innovation instead of discouraging market participation.
Political insiders told the newswire that the government might ultimately decide to keep the current 26% tax rate intact, reflecting broader concerns within the coalition about the potential impact on Italy’s emerging digital asset sector.
The ruling coalition is divided
Giancarlo Giorgetti, Economy Minister of Italy at the time, initially pushed for a tax increase. However his party members were against it.
Giorgetti framed the measure as a way to generate approximately €16.7 million annually for public finances. The government was heatedly divided over the impact of the plan on the budget.
The League party, known for its pro-business stance, argued that a less aggressive approach would better align with Italy’s broader economic goals. It claimed that Italy would lose its competitive advantage if it chose to “punish innovation” — urging a strategic rethink of the policy.
Posted In: Italy, Crypto, Featured, Regulation Author 
Assad Jafri
AJ has been a journalist for more than a decade, and he’s become a master of his craft since the Arab Spring in Yemen, 2011. Specialized in financial journalism and now focused on crypto-reporting.
Email: @Saajthebard Editor
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