Indian MP proposes raising crypto tax higher than 30%
Sushil Kumar Modi, a member of Parliament (MP), has urged India’s finance minister Nirmala Sitharaman to consider raising the capital gains tax on crypto income to over 30%, the flat rate scheduled to kick in from April 1.
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Fast facts
The minister argued that the compound annual growth rate (CAGR) of cryptocurrencies is so high that “investors are attracted by the extraordinary profits.”
“Bitcoin’s CAGR is 115% while that of Ethereum is 30%,” Modi said. “People who really make an income from crypto, 30% [tax] is not going to make any difference to them.”
On top of the 30% tax on crypto income, India is slated to introduce a 1% tax deducted at source for every crypto transaction made from July 1.
India’s crypto investors, traders as well as exchange owners took to social media to urge the finance minister to reconsider high taxation on an asset class that is still very nascent.
MP Priyanka Chaturvedi was one of the few ministers who came forward in support of crypto trading in India, championing the creation of a regulatory framework to aid innovation.
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