Indian government plans to levy 58% tax on cryptocurrency trading

Cryptocurrency in Indian Subcontinent.

Cryptocurrency is spreading its wings across the borders and across a varied diversity.  Cryptocurrency is also penetrating the Indian market, according to the reports. The technology enabled economy provides an interesting opportunity for cryptocurrency to grow and explore a new dimension of revolution in the Indian Market.

According to a recent survey by Indeed, job positions for cryptocurrency have been increased by at least 804% from 2019 to 2022. The increase in percentage justifies that, there is a big revolution expected to happen in Indian market in regards to cryptocurrency.

The only barriers standing in front of cryptocurrencies in its way to capture Indian market is the staggering tax rates levied by the Indian Government. In February 2022, the government of India went on to impose 30% tac on cryptocurrency trading. The finance minister also remarked the move as a step towards crypto regulation. As soon as the tax was imposed, a lot of crypto exchanges such as Coinbase, FTX functioning in India lost at least 30% and pushed these exchanges to withdraw from Indian market.

Addition of 28% to be levied on cryptocurrency in India.

According to a report by Bloomberg, a cabinet panel will meet the next week to talk about imposing a goods and services tax on bitcoin transactions. A task team that the administration appointed is advancing the proposal.

The government of India is considering to extend the tax net to monitor transactions in virtual digital assets more successfully. If the reports are true, the panel set up by the government will be conducting a meeting for two days in Chandigarh from June 28.

From the report submitted by Bloomberg, it is believed that, the panel is not expected to finalize at the exact tax rate to be added on the already prevailing tax imposition. However, the news is going round that, the tax rate is expected to be increased by at least 28%.

Indian government acting too greedy in cryptocurrency’s case.

It is true that, cryptocurrency has the potential to revolutionize the entire financial system of the world. As is the case, Indian government is also making its best attempt to seize the opportunity to gain as much revenue from cryptocurrency as possible and also regulate the market accordingly. But, high imposition of tax will only derail the idea of the cryptocurrency market to enter Indian market. This could cause catastrophic results for India, as the country will losing a lot of untapped opportunity in the crypto market.