Indian Parliament Member Asks Government to Tax Crypto Income More Than 30% – A member of the Indian parliament has pushed the government to raise the tax rate on cryptocurrency income from the existing proposed rate of 30%, claiming that cryptocurrency trading is similar to gambling. He’s also asked for a goods and services tax (GST) to be levied on the whole value of crypto transactions.
The Rajya Sabha, India’s upper house of parliament, is now debating India’s Finance Bill 2022, which includes a proposed 30% tax on crypto revenue.
Sushil Kumar Modi, a member of Parliament, is said to have asked the government on Monday to raise the tax rate on bitcoin revenue from 30% to 40%.
Also Read: Parliament Member Says 1% TDS Will Kill Crypto Asset Class in India, Urges Government to Reconsider
He stated:
“I’d like to ask the finance minister to consider raising the 30% tax on cryptocurrency in the coming days.”
Modi, a member of Parliament, said that cryptocurrency is not a commodity, an asset, a good, or a service, and that it lacks intrinsic value.
He went on to say that, unlike stocks, which are backed by companies, “crypto is gambling.” “Who is behind crypto?” he inquired further.
The parliament member went on to say that the 18% goods and services tax only applies to crypto service providers like exchanges, and that this should be increased.
Modi stated:
“Lotteries, gambling, casino betting, and horse racing are all similar to cryptos. All of these operations are subject to a 28 percent tax (GST) on the total transaction value. As a result, I respectfully suggest that the GST council consider applying GST on the overall transaction value of cryptocurrency.”
Modi went on to list examples of countries that have implemented higher crypto taxes. According to him, Japan imposes a 55 percent tax, while Germany, France, and Australia levy up to 45 percent.
Also Read: US Senators Working on Broad-Based Crypto Regulation
Investors were holding bitcoins in private wallets before April 1st, according to the parliament member, and “$8 billion worth of crypto assets is expected to leave the country.”
In addition to the 30% tax on cryptocurrency profits, Indian Finance Minister Nirmala Sitharaman has suggested a 1% tax deducted at source (TDS) on all cryptocurrency transactions. The 1% TDS will be implemented on July 1st, whereas the 30% income tax will be implemented on April 1st.