Sushil Kumar Modi, a member of the Indian Parliament, has requested that the government increase the capital gains tax on cryptocurrencies since they are similar to gambling. He argues that the proposed 30% tax is insignificant in comparison to what the government should charge.
In addition to the foregoing, he emphasized that the government should levy a goods and services tax (GST) on the overall transaction value of cryptocurrency rather than profit.
Prior to his request, the government was debating India’s proposed 30 percent crypto capital gain tax in the Finance Bill 2022. The Rajya Sabha, India’s upper house of parliament, is currently evaluating this bill.
Modi has requested that the government increase the proposed rate to a higher amount, and he reportedly 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.”
He believes that cryptocurrency is not classified as an asset, but merely as a tool for gambling as there is no company backing it.
Modi went on to state that the goods and services tax (GST) of 18% levied on the crypto platforms should be increased.
He stated,
“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.”
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