The tax rate on crypto income should be raised from 30 percent to 50 percent, a member of the Indian parliament said. He said that crypto trading is like gambling. On top of that, he has also asked that the goods and services tax (GST) be charged on the total value of all transactions made with crypto.
There is a person in the Indian Parliament who wants to tax crypto income more than 30%
Rajya Sabha, India’s upper house of parliament, is now looking at India’s Finance Bill 2022, which includes a proposed 30% tax on crypto income, and they’re going over it.
Sushil Kumar Modi is said to have asked the government to raise the tax on cryptocurrency income from 30 percent to 50 percent on Monday. Then, he said:
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, a member of the parliament, said that cryptocurrency is not a commodity, an asset, goods, or a service, and that it doesn’t have value on its own.
When he said that while stocks are backed by the companies that own them, “crypto is just gambling.” Further, he asked, “Who is behind crypto?”
MP: The 18% goods and services tax (GST) is only charged on crypto service providers, like exchanges. This needs to be raised to more than 20%. People say this is what Modi thought.
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.
Investors are attracted to “extraordinary profits,” Modi said, adding that “no one knows what the value of crypto is,” adding that “no one knows how crypto works.”
Modi then gave examples of countries that have taxed crypto more. In Japan, he said, there’s a tax of up to 55%; in Germany, France, and Australia, there’s a tax of up to 45%.
Investors have been storing their cryptocurrencies in private wallets before April 1, says a member of the parliament. Before then, “$8 billion worth of crypto assets” will be sent out of China.
India’s Finance Minister, Nirmala Sitharaman, also wants to add a 1% tax at source (TDS) to every crypto transaction. This is in addition to the 30% tax on crypto income. The 1% TDS will start on July 1, and the 30% income tax will start on April 1. It will kill off the new type of asset, an Indian parliament member says.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
