Italy plans to raise the tax on capital gains in bitcoin from 26% to 42% as part of efforts to reduce the budget deficit, Bloomberg reports .
The government took this decision because “the [bitcoin] phenomenon is spreading,” said Italy’s Deputy Finance Minister Maurizio Leo.
Some countries have already introduced onerous fees for trading digital assets, but these stories have not always ended successfully, the publication recalls. For example, two years ago, India introduced similar measures . As a result, the country only saw a reduction in trading volumes, as local investors switched to offshore platforms.
Italy is trying hard to reduce the country’s budget deficit, which amounted to 7.4% of GDP last year, while the target figure for EU member states is 3% . In the summer, Rome doubled the tax on foreign income of wealthy foreigners. The amount of the fee increased from €100,000 to €200,000.
It was previously reported that Italy’s external debt approached €3 trillion.