Following the new tax legislation, a member of Indian upper parliamentary chamber and the country’s ruling party has urged for harsher actions against the crypto industry. The legislator feels that the government should discourage people from participating in the fledgling market.
Despite the opposition of industry members, India imposed new severe tax legislation on the crypto business at the end of last month. The rule, which requires a 30% tax on revenue earned from trading or investing in crypto assets, has been in effect since last Friday.
Since its implementation, trading volume and on-chain activity have decreased on exchanges. Some MPs in the country, on the other hand, demand even tougher tax laws for the industry.
According to Forkast, Sushil Kumar Modi, a member of India’s upper house of Parliament and a member of the ruling party, believes that crypto profits should be taxed at 50%.
“No one knows what this crypto is,” Modi remarked, adding that the Indian public needed to be dissuaded from participating in the new industry. According to Modi, the Indian government views cryptocurrency trading and investing in the same light as horse racing and lottery, with higher tax rates.
Crypto transactions, like other speculative activity in the country, should be subject to a 28 percent Goods and Services Tax, according to Modi. Modi also expresses concern about the anonymity of certain cryptocurrency producers, claiming that people are using the embryonic market to carry out illegal actions.
While the Indian government has chosen to tax the crypto market, no legislative structure to control the industry has been established. According to Nirmala Sitharaman, the country’s finance minister, and confirmed by Modi, the government has yet to determine whether to regulate the market or outright ban it.
Meanwhile, according to Modi, the government has yet to decide whether to treat cryptocurrencies as investments or commodities. Modi claims that the administration will enlist the help of the IMF and the World Bank to make some of these decisions. However, the congressman stated that he is confident that the Indian government will not grant cryptocurrencies legal tender status.