India’s finance minister makes a controversial statement about crypto in the recent discussion on Union Budget 2022-23. When we heard about the crypto tax in India, everyone assumed that this meant regulations would come. Even though the tax was too high, it was somewhat a positive step. But now, Nirmala Sitharaman says that taxing crypto doesn’t give them legal status. She said that India is taxing crypto because it is the sovereign right to do so. And this thing doesn’t bode well with investors and also many authorities.
"Banning or not banning will come subsequently when the consultation gives me inputs but then would you rather have me not tax & allow the profits to be there. "
"I will tax because its sovereign right to tax."
-FM Nirmala Sitharaman on Crypto pic.twitter.com/VUSmaODR7Z
— Crypto India 🔑 (@CryptooIndia) February 11, 2022
India’s finance minister makes a controversial statement
I am not of the stature to judge the steps taken by the Finance Minister of India but taxing something basically means that the government is approving of it. It is sad to see that the government is asking for profits from investors but in no way are supporting them. Proper crypto regulation is very important right now in India. In fact, the finance minister said that banning or not banning will come in the future, and it is still being worked on.
This is again a worrisome fact as many investors got relaxed after the tax news that a ban won’t be happening. The recent statement also supported what the head of India’s tax authority said a while back. He said that taxing digital assets doesn’t necessarily mean recognizing them as legal entities. Now, it isn’t easy to guess when proper regulation will be arriving. This is because the topic has been left out from this session.
People are disappointed
Twitter has become filled with grievances from investors in India regarding the latest developments. They are complaining about the way the government is handling the entire situation. Everyone just wants a fair taxation system where small investors are not wiped out. The current tax process treats cryptocurrencies like gambling which is not what it is.
The government is worried, and rightly so. Bitcoin challenges the government and the politicians don't want it. They are truly scared of it.
— Anurag Saikia (@AnuragSaikia) February 11, 2022
Some are also saying that the government is worried that Bitcoin is going to take power away from them, and they are truly worried.
Do you think this is right in the past for the government to tax crypto like gambling and not even give it a legal status? And why do you think India is not taking cues from more developed countries like the US? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.