On December 29, 2022, just a few days before the end of the year, the Italian Senate approved the country’s budget for 2023. This budget included an increase in taxes for crypto investors in the form of a 26% tax on profits. capital. in crypto asset trading that exceeded 2,000 euros (approximately $2.13 at press time).

Previously, in this nation, crypto assets were considered the same as foreign currencies, which meant they were subject to reduced taxes.

Additionally, the bill stipulates that taxpayers will be able to declare the value of their digital asset holdings starting January 1 and pay a 14% tax rate if they do so. These incentives are designed to encourage Italians to declare their digital assets and are therefore included in the bill.

Tax amnesties to reduce penalties for non-payment of taxes, tax incentives for job development and a reduction in the retirement age are some of the other changes introduced by the legislation governing the budget.

In addition, it provides tax breaks for a combined €22.4 billion, or €21 billion, for businesses and individuals coping with the energy crisis.

Despite campaigning in September on a platform to enact major tax cuts, Giorgia Meloni, Italy’s first woman to serve as prime minister, was able to garner broad support from the Italian legislature for her proposed measure.

According to local media reports, one of the measures taken by the Italian government to reduce gas consumption across the country includes making buildings without central heating remain without it for more than 15 days. Additionally, during the winter months, residents are asked to turn the heat down one degree and off for an additional hour each day.

After the Markets in Crypto Assets (MiCA) bill, which provides a uniform legal framework for cryptocurrencies across the 27 member nations of the European Union, was passed on October 10, lawmakers in Italy moved quickly to pass its bills. own laws on the subject.