From crypto to company cars, the government tries to cash in on indirect taxes

The new budget law has confirmed the cut in the decontribution of middle and low wages up to EUR 35,000, which will increase this year up to the threshold of EUR 40,000, a 'pact of about EUR 16 billion', as Economy Minister Giancarlo Giorgetti called it. But at the same time it envisages increases in the indirect taxation in some sectors that should bring about 620 million into the coffers. These range from the increase in the rate on capital gains from cryptocurrency, the change in the fringe benefit on company cars and that on VAT for waste disposal, to the non-confirmation of the reduction in the RAI licence fee.

The Manoeuvre provides for an increase in the taxation of capital gains and income from crypto-assets transactions. Taxation under current legislation provides for a 26% withholding tax, with an exemption threshold of EUR 2,000. From 1 January, if the Budget Law enters into force as it stands, it will rise to a rate of 42%. Monitoring data shows an annual revenue of EUR 27 million to date: the application of the 42% rate is estimated to generate additional revenue of about EUR 16.7 million on an annual basis.

The League's warhorse, the manoeuvre passed at the end of 2023 had envisaged a reduction of the Rai licence fee, but only for 2024, from EUR 90 to EUR 70. The loss of revenue for Rai was compensated by a contribution of 430 million for 2024. In the text of the manoeuvre approved by the government, the confirmation of the allocation that had allowed the Rai licence fee to be cut last year is missing. In the text there is, on the other hand, a recommendation for public TV to make savings. In 2025 there should be no increase in expenditure items related to personnel costs and the awarding of consultancy contracts compared to the level of expenditure in 2023.

The manoeuvre aims to penalise diesel and petrol company cars by increasing the Irpef and contribution tax for employees and companies. Currently, the tax authorities penalise company cars based on CO2 emissions, with percentages ranging from 30% to 60% of the car's value, affecting taxable income. Approximately 90% of company cars are subject to these rules, while electric and plug-in cars benefit from a reduced taxation of 25%.

The new budget law, effective from 1 January 2025, will increase the tax rate to 50 per cent for all diesel and petrol cars, including those with emissions above 190 CO2. For example, a car with a fringe benefit of EUR 2,416.5 will see an increase of 66%, exceeding EUR 4,000.