- Sushil Kumar Modi, a member of the upper house of the Indian parliament. he called on the Indian government to tax crypto income up to 50 percent.
- The politician is also seeking a goods and services tax of 28% on the total value of the crypto transaction.
Cryptocurrencies have been the talk of the town in recent years, both for their benefits and for their critical points and the way in which they may or may not help or worsen a country’s economy.
Although there are conflicting opinions, between those who are for and against integrating them into their respective economies, there are those who even have the idea that they should pay taxes, but not just any figure, but a very high one.
Member of Parliament wants to tax crypto assets at 50%
This is the case of a Member Of Parliament Of India, Sushil Kumar Modi, who shared his perspective on crypto assets through an interview, made public on April 5. It should be noted that Modi is a member of the Rajya Sabha, i.e. of the upper house of the indian parliament.
The politician became news in his country after urging his government to impose more than 30 percent tax on crypto income before the upper house passed this year’s Finance Bill. According to what was stated in the interview, Kumar Modi indicated that he pointed out to the Indian government the need to tax crypto income up to 50 percent.
“The government has not said it in many words, but… digital assets are very similar to gambling. They are like a casino, like the lottery, like horse racing… and in all these types of entertainment accompanied by gambling, the tax rates are very high”, declared the politician.
They propose to apply tax to GST
However, Modi did not stop there, as he also pointed out that, in addition to wanting to establish a tax on digital tokens in order to raise resources for the treasury, he also proposed applying a goods and services tax (GST) of 28 percent on the total value of the crypto transaction, instead of just 18 percent GST on the service provided by crypto asset exchanges.
“As in games of chance and the like, the tax on goods and services should be included in the total value of the transaction”, pointed out.
In addition to proposing tough measures to pay taxes on digital assets, the Indian parliament member continued to make clear his disdain for crypto assets, noting that they are like traditional investments, because this type of money digital and its actions, have companies behind them, but mysteriously, no one knows who specifically is “behind the scenes”.
Due to this condition of ignorance of the weave and handling of crypto assets, it is that Modi intends to take virtual tokens out of the game, for considering them a risk for their economywhich is why, he pointed out, it is essential to discourage and discourage their trade and investment in this class of assets.
Legislation on the crypto environment
In turn, Sushil Kumar Modi pointed out that currently, The Indian government is working on legislation on the crypto environment, with which it must decide on the near future of this type of asset.indicating whether cryptocurrency is an asset, merchandise, a share, a good or a service.
Similarly, the member of the Indian parliament, pointed out that it is of vital importance that the government of his country deliberates the crypto legislation with the International Monetary Fund (IMF) in addition to the World Bank.
“The Government of India should not at any time feel pressured or rushed, as the right thing to do is to present a consultation document# Kumar declared.
Although Modi has pointed out that it is possible to regulate digital assets, he pointed out that it is a bad idea to follow the steps of nations such as El Salvador, in terms of the possibility that the government adopts Bitcoin as legal tender.
There is something in all this that is very clear and evident, and that is the fact that The Indian government will not, under any circumstances, embrace the idea of legalizing digital assets, as happened in El Salvador or Ukraine. Therefore, at no time will crypto assets be treated as legal tender or fiduciary currencies.
“A low-income country like ours should not try to promote this type of activity too much.”, he finished.
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