Portugal’s Parliament Rejects Two Proposals to Tax Crypto

Portuguese Parliament, Assembleia da Republica, seems to have grown a strong opposition against Bitcoin. According to the local media outlets, the Parliament members have not only voted against the Bitcoin proposal not only once but twice.

One of the proposals called for recognizing Bitcoin in Portugal as a legal entity, while the other proposal aimed to introduce a regulatory framework for imposing taxation laws on cryptocurrencies.

It is worth noting that the support for the cryptocurrency bills hailed from political parties that represent the minority in the country.

Another important factor weighing in on the matter is that the parties that presented these proposals pre-dominantly identify as leftists, namely Bloco de Esquerda and Livre. The timing of the cryptocurrency bills is also crucial, as it was presented during a budget announcement for 2022.

Portuguese media outlet ECO recently reported that, at present Socialist party is in the ruling position accounting for the majority of the seats in the parliamentary assembly.

Thus far, the members of the ruling party have refrained from sharing their perspectives on the matter. However, the general sentiment dictates that sooner than later, the Portugal government will end up adding cryptocurrencies to its taxation laws.

Fernando Medina, the Finance Minister of Portugal, recently claimed that the government agencies are working on creating a framework that would define the taxation laws for cryptocurrency traders.

He also confirmed that digital currency traders would soon be liable to pay taxes in lieu of Capital Gains. However, he refrained from sharing a precise date or timeline for making the transition.

Portugal’s Finance Minister Claims that Cryptocurrency Taxation Laws Should be Clear

Speaking to the media, Medina claimed that the taxation laws for cryptocurrency traders should be comprehensive and free from any legal loopholes or lags.

He also claimed that there are many ways to go around a loose crypto tax law. As per his earlier remarks, more and more countries in the world are leaning towards regulating cryptocurrencies and imposing taxes on them.

Another Senator named Mariana Mortagua hailing from Bloco de Esquerda, took a critical view of the government officials for failing to impose a timely cryptocurrency taxation law.

She recently told the media that her party has been campaigning for imposing parallel laws on cryptocurrencies as the capital gains rates. She has been actively working to create more awareness and gather support for her stance.

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