The new crypto tax regime has caused a public outcry in India.
Ever since the Budget 2022-23 was announced, the crypto community of India is in an uproar.
The Minister of Finance of India, Ms Nirmala Sitharaman proclaimed to levy a 30% tax on all crypto transfers and a Tax Deduction at Source (TDS) at 1% above a monetary threshold.
The very same day Thailand rolled back a 15% withholding tax on crypto transactions after a public outcry.
India is witnessing a similar outcry.
Since then, the community is questioning the ambiguities of the imminent tax regime. Netizens are calling the tax regime an obstacle for investors and entrepreneurs.
Public Outcry
On Thursday, the hashtag #reducecryptotax is trending at the number 1 position on Twitter in India with more than 130 thousand tweets.
Popular crypto influencer Aditya Singh started a petition urging the Government to “reconsider and reduce crypto tax.”
At the moment, the petition has garnered more than 20 thousand signatures.
Government’s Perspective
On the other side of the spectrum, in an interview with Business Today, the Chairman Central Board of Direct Taxes (CBDT), Mr. JB Mohapatra has opined that the 30% tax rate on crypto is not high. “It could have been more but we pegged it at 30 per cent.”
He also clarified that “Taxation does not attach any legitimacy or legality to the transaction which has been affected for surplus or deficit in a crypto trade.”
The stance of the regulators may not be completely pro-crypto, but it is a significant shift from the earlier one when they were considering a blanket ban. Until the Government comes up with regulation, crypto may be taxed like speculative transactions such as betting or horse racing.
It would be interesting to see how the Government reacts to the outcry. Can we see a Thailand like rollback or the Government will stay firm on its decision?
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