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.

Indian Parliament Member Asks Government to Tax Crypto Income More Than 30%

A member of the Indian parliament wants to tax cryptocurrency income at a rate of more than 30%.

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%. He stated, "

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.

Parliament member Modi argued that cryptocurrency is not a commodity, an asset, goods, or a service, emphasizing that it does not have intrinsic value.

He added that while stocks are backed by companies behind them, “crypto is gambling.” He further questioned, “Who are behind crypto?”

The parliament member further pointed out that the 18% goods and services tax (GST) is only levied on crypto service providers, such as exchanges, emphasizing that this needs to be increased. Modi opined:

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 by extraordinary profits,” Modi stressed, adding that “no one knows what is the value of crypto.”

Lotteries, casino betting, gambling, and horse racing are all examples of 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.

"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 percent tax, while Germany, France, and Australia levy up to 45 percent.

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 nation."

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. A member of the Indian parliament has warned that implementing a 1% TDS on all cryptocurrency transactions will eliminate the budding asset class.

Source: bitcoin.com

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