30 percent tax on crypto profits is not enough

Every government thinks about it: taxing crypto profits. According to some MPs, even 30 percent is not enough.

Of course you can’t, earn money without paying tax on it. The government is afraid of that and is trying to legislate to regulate digital currencies. There are also thoughts about this in the Netherlands. But in India they go further.

Tax on crypto profit

An Indian Member of Parliament has urged the government to increase the tax on crypto income from the current proposed rate of 30%. He is obviously not a fan, as he emphasized that crypto trading is similar to gambling. India’s Finance Bill 2022 containing the proposed 30% tax on crypto income is now under consideration in Rajya Sabha, the upper house of the Indian parliament.

Member of Parliament Sushil Kumar Modi believes that this is too little. He has asked the government on Monday to raise the tax on cryptocurrency income from the current rate of 30% (which has not even been introduced yet). He said: ‘I would like to request the finance minister to consider in the coming days whether this tax can be increased further’ the 30% tax you have levied on crypto. The question is whether the minister agrees.

No value

The proposal comes as no surprise as the MP also said that cryptocurrency is not a commodity, asset, goods or service, and emphasized that it has no intrinsic value. It is gambling and there is a higher rate for it. Cryptos are comparable to lotteries, casinos betting, gambling and horse racing, the MP said.

All these activities are subject to a 28% tax (GST) on the total transaction value. That must therefore also be levied in addition to the aforementioned tax. Presumably a rather hopeless proposal, because many financial assets would then leave the country.