Sushil Kumar Modi an upper house Indian parliament member of Rajya Sabha has recently shared his view on cryptocurrency. On Tuesday his interview with Forkast went live. His goal was to impose a 30% tax before Rajya Sabha passed their Finance Bill. However, in the interview published Tuesday, Modi mentioned that India should tax crypto 50%.
Modi said “The government has not said in so many words… that crypto is like gambling. It is like lottery, it is like a casino, it is like horse racing… and in all these things tax rates are very high.”
Modi has suggested more than just a 50% tax on crypto. Modi also proposed levying a 28 percent goods and services tax (GST) on the whole value of crypto transactions in India, rather than simply an 18 percent GST on the services offered by crypto exchanges. “Like gambling, horse racing, casino, lottery, the GST should be on the entire transaction value” he said.
Modi went on to compare crypto to traditional investments. He pointed out “nobody knows who is behind these cryptos, we need to discourage and disincentivize” referring to trading and investing.
Modi added that India’s government in the near future needs to decide what they consider crypto. A commodity, an asset, a good, a service, or a stock. Regarding this decision, he said “the government of India should not be in a hurry and they should come up with a consultation paper.”
It’s Not Legal Tender:
The Indian parliament member dismissed the idea that India will make bitcoin legal tender. He added “One thing is very clear; the government of India is not going to legalize (crypto) like El Salvador or Ukraine. It will not be treated like a legal tender or fiat currency”
As India is an industry of fantasy gaming, the member of the Indian Parliament said “a low – income country like India should not encourage these activities too much.” Modi expects strict regulations and tax for India in regard to investing in crypto. His last words on the topic were “the government wants to make like hell for those people who are investing in cryptos. That is the bottom line. That is the main thrust of the entire tax.”