Sushil Kumar Modi, 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.
On Monday, Sushil Kumar Modi asked the government to raise the tax rate on cryptocurrency revenue from 30% to 40%. He stated, “I’d like to ask the finance minister to consider increasing the 30% tax on cryptocurrency that you’ve imposed in the future 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 companies back, “crypto is gambling.” “Who is behind crypto?” he inquired further. The parliamentarian went on to say that the 18 per cent goods and services tax (GST) only applies to crypto service providers like exchanges and that this should be increased.
Modi stated: Lotteries, casino betting, gambling, and horse racing are all examples of cryptos. These operations are subject to a 28 per cent 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.
“Extraordinary earnings attract investors,” Modi said, adding that “no one understands what the value of crypto is.” Modi went on to list instances of countries that have implemented greater crypto taxes. According to him, Japan imposes a 55 per cent tax, while Germany, France, and Australia levy up to 45 per cent.
According to the parliament member, investors were holding bitcoins in private wallets before April 1, and “$8 billion worth of crypto assets is expected to leave the nation.”
In addition to the 30% tax on cryptocurrency profits, Indian Finance Minister Nirmala Sitharaman has proposed a 1% tax deducted at source (TDS) on all cryptocurrency transactions. The 1% TDS will be implemented on July 1, while the 30% income tax will be implemented on April 1. A member of the Indian Parliament has warned that implementing a 1% TDS on all cryptocurrency transactions will eliminate the budding asset class.