The Italian government is considering increasing the capital gains tax for investments in Bitcoin ( BTC ) from 26% to 42%, according to Deputy Economy Minister Maurizio Leo.

Speaking at a press conference at Palazzo Chigi on Oct. 16, Leo provided remarks on Italy’s new budget bill approved by the Council of Ministers.

According to the budget bill, the withholding tax on Bitcoin capital gains should rise to 42%, the minister stated. He also mentioned that the bill would remove the web tax threshold of 750,000 euros ($817,000):

“On web tax revenues we are working to eliminate the ceiling of 750 million euros and the part produced in Italy relating to 5 million, therefore we are eliminating the thresholds.”

The removal of the web tax threshold follows Italy’s 2019 budget, which introduced a 3% levy on revenue from internet transactions for digital companies with sales of at least 750 million euros, of which at least 5.5 million are made in Italy.

This is a developing story, and further information will be added as it becomes available.