Bloomberg: The Italian government plans to increase the tax rate on cryptocurrency transactions to 28%, instead of the previously proposed 42%

ChainCatcher news, according to Bloomberg, informed sources revealed that the government led by Italian Prime Minister Giorgia Meloni may approve the proposal from coalition partners to reduce the tax increase on cryptocurrency transactions.

A copy of the proposal shows that as the junior partner in Meloni's ruling coalition, The League has put forward an amendment to limit the tax rate on crypto transactions to 28%, while the budget proposed last month initially suggested an increase to 42%. The current tax rate is 26%.

Cryptocurrency executives have stated that the proposed tax rate is too high and would make the local industry less competitive compared to other EU countries. The EU is preparing to fully adopt its first comprehensive cryptocurrency regulation across the bloc, known as "MiCA," by the end of this year.

Additionally, another ruling coalition party, Forza Italia, founded by the late Silvio Berlusconi, has proposed another amendment aimed at completely eliminating the tax increase and removing the tax exemption for earnings of €2,000 ($2,120) or less.

As part of the coalition's proposed amendments, Italy will establish a permanent working group composed of digital asset companies and consumer associations to educate investors about cryptocurrency. Two informed sources indicated that the government is likely to approve The League's proposal, although no final decision has been made, and it may be subject to modifications.