Tax proposals on bitcoin and other crypto fail in Portugal’s parliament

There were two separate attempts to tax Bitcoin and other cryptocurrencies that were rejected by the Portuguese Parliament’s Assembleia do Repblica.

Reports published in the Portuguese economic monthly ECO claim that the proposals made by Bloco de Esquerda and Livre, two left-wing parties, were shot down during a vote on the 2022 budget on May 25.

No legislation has been introduced by the Socialist Party, which has taken control of the government and the majority of the legislative assembly. Despite this, it is possible that Portugal may no longer exclude cryptocurrencies from taxes in the near future.

Finance Minister Fernando Medina said earlier this month that the government plans to begin taxing cryptocurrency. He also said that the government will be working on the regulatory framework, although he didn’t provide a specific time limit for this.

According to him, “Many nations already have systems, many countries are constructing their models in regard to this issue, and we will create our own”

In addition, he argued that the tax system should not have any “gaps” that would allow certain incomes to be taxed in the United States but not others.

An outspoken member of parliament from the Bloco de Esquerda, Mariana Mortágua, has slammed the government for failing to find a way to tax cryptocurrency before the vote.

“Our commitment to putting a stop to this offshore is to subject crypto assets to the same rate applied to capital gains on equal income,” she added. Mortágua is one of the most outspoken critics of crypto taxes.

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