India’s Parliament and Crypto Tax

India's Parliament and Crypto Tax

India’s parliament Finance Bill that came out in 2022 includes a 30% crypto tax. It is set to take effect in Rajya Sabha, the upper house of the Indian Parliament.

India’s Parliament – Modi:

Sushil Kumar Modi, one of India’s parliament members, requested the government increase the crypto tax from the 30% it stands. In Modi’s words, “I would like to request the finance minister that the 30% tax that you have imposed on crypto, please consider in the coming days if this tax can be further increased.”

Modi claims that bitcoin is neither a commodity, asset, good, or service. Stressing that it lacks intrinsic value. He went on to add that even though crypto is under a company, it is still gambling. He questioned, “Who are behind crypto?”

Modi points out that “Cryptos are similar to lottery, casinos betting, gambling, and horse racing. In all these activities, 28% tax (GST) is imposed on the total transaction value… So I request to you that the GST council needs to consider imposing GST on the total transaction value of crypto.”

Modi emphasizes the fact that investors focus on the big profits. He believes that nobody truly knows how much the value of crypto is. He then gave examples of countries that have raised crypto taxes. Stating that Japan imposed a 55 percent tax, while Germany, France, and Australia imposed up to 45 percent.

Indian finance Minister Nirmala Sitharaman also recommended putting a 1% tax deducted on the source of every crypto transaction made. The 1% tax will go into action on July 1, while the 30% income tax on April 1. An Indian parliament member has warned that charging a 1% TDS on all crypto transactions will destroy the new asset class.

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India’s Parliament and Crypto Tax
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