It looks like there is another country that is going to make life difficult for Crypto investors and this time it is Italy. As per the NEWS UPDATE, the country is planning to increase the capital gain tax to 42% and currently, it is 26%. It is going to be big because the shift of 16% is too much for the people to handle and it will certainly affect the industry.
Currently, India is one of the countries where the tax for crypto gain is very high standing at 30% and now Italy is going to lead the segment with a higher amount of tax which is going to be 42%. Sadly, some countries are taking things this way and they are trying to discourage the investors by putting heavy taxes on the gains. This can be a good opportunity for the country to earn more revenue but this will negatively affect the industry and it will also discourage a lot of investors from staying away.
Italy is preparing to increase the capital gains tax on Bitcoin and other cryptocurrencies to 42%, according to Deputy Finance Minister Maurizio Leo, who shared the news during an Oct. 16
The crypto industry is growing and this is why most probably some of the governments are trying to tax it higher so that they can gain the benefits as much as possible but they are not thinking about the sustainability of this industry. This market is still new and is not matured but it will take some years to be in a better state however to make it happen the government needs to come forward with favourable regulations and taxations.
It's great that some of the countries like Dubai are doing great work for Crypto but sadly some of them are not very interested in crypto it seems as if they are bringing heavy taxation and difficult regulations for the industry. Italy is going to increase this taxation soon as per the latest update but sooner or later it is going to make things difficult for the crypto investors in the country. I believe that crypto should also be treated as normal income and there should not be a different treatment since it is neither illegal nor something that offers massive returns overnight.
People can also lose money in crypto and in India that loss is not adjustable which is another problematic part along with the heavy taxation but that's how it is and people have no choice but to pay the tax whatever is applicable in their cases. In some cases, people have to pay taxes even when they have not made any money out of it just because their losses are not adjustable.
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