
Indian lawmakers claim crypto is gambling. Taxes should be imposed at as high as 50%. “We need to discourage and disincentivize” trading and investing in the asset class, he stressed.
Indian parliament member wants to tax crypto at half off
Sushil Kumar Modi is an Indian politician and shared his thoughts on cryptocurrency with Forkast in an interview, which was published Tuesday. Modi is a member of Rajya Sabha, the upper house of India’s parliament.
Recent headlines were made when he asked the Indian government for a higher than 30% tax to be imposed on crypto income, prior to Rajya Sabha passing Finance Bill 20202. The publication was informed by him that the Indian government should tax cryptoincome up to 50%.
Modi explained:
The government has not said in so many words … that crypto is like gambling. It is like lottery, it is like a casino, it is like horse racing … and in all these things the tax rates are very high.
Modi proposed that crypto income be taxed at 50%. However, he also recommended that 28% goods-and-services tax (GST), is imposed on all crypto transactions value instead of 18% GST. “Like gambling, horse racing, casino, lottery, the GST should be on the entire transaction value,” he opined.
A parliament member then described crypto as traditional investments. Stating that stocks have companies behind them, “nobody knows who is behind these cryptos,” he pointed out. “We need to discourage and disincentivize” trading and investing in the asset class, the lawmaker emphasized.
According to him, the Indian government was working on cryptocurrency legislation. They need to make a decision in the very near future about whether crypto is an investment, commodity, stock or good. He noted that the Indian government should discuss crypto legislation, including with the International Monetary Fund and the World Bank.
India’s government shouldn’t be in hurry. They should instead prepare a paper for consultation.
Modi clarified that crypto assets could be regulated but dismissed any possibility that India will accept bitcoin as legal tender. He detailed:
It is clear that the Indian government isn’t going to legalize crypto like El Salvador and Ukraine. It won’t be considered a fiat or legal tender.
“We feel these cryptos are not good for the financial stability of any country … Only countries with unstable finances are legalizing these tenders,” he opined. El Salvador made bitcoin its legal tender last September. Ukraine’s president signed the law “On Virtual Assets” last month after the invasion by Russia.
Commenting on the subject of online gambling and India’s multi-billion dollar fantasy gaming industry, Modi said, “A low-income country like India should not encourage these activities too much.”
Rajya Sabha member expected to see stringent regulations in India for cryptocurrency. He warned: “The government wants to make life hell for those people who are investing in cryptos. This is the end result. That is the main thrust of the entire tax.”
What do you think about this Indian parliament member’s comments? Comment below.
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