Crypto Sales Tax At 28%? Discussions Next Week

Crypto Sales Tax at 28%?  Discussions next week

India panel to consider cryptocurrency sales tax next week

An Indian ministerial panel is set to meet next week to discuss a goods and services tax on cryptocurrency transactions, said those knowledgeable on the matter.

The panel, made up of the federal and state finance ministers, is trying to broaden the tax net to track transactions in virtual digital assets more effectively, the people said, refusing to be identified citing rules for speaking to the media.

The panel will meet for two days from June 28 in the northern Indian state of Chandigarh.

The panel is unlikely to set a final rate at its upcoming meeting, but discussions could be held to place it in the highest tax bracket of 28%, the people said.

A Treasury Department spokesman did not immediately respond to calls for comment.

Earlier this year, Finance Minister Nirmala Sitharaman imposed a 30% levy on virtual asset transfer revenues and a 1% withholding tax on all crypto transactions in an effort to assess the size of the crypto market in the country and track users.

The move was seen as removing uncertainty about the legal status of crypto transactions.

However, there is still no clarity on imposing a sales tax on digital currencies due to ambiguity in their treatment as goods or services and a lack of a regulatory framework.

The federal government is already working on legislation to regulate or tighten its provisions, though it’s not expected until after a global consensus has emerged on how to regulate such assets, Bloomberg had previously reported.

Digital currencies have been under pressure throughout the year, along with other risky assets, as global central banks have begun raising interest rates to quell rising inflation.

Bitcoin is down about 50% this year and Ether is down 70%.

(Except for the headline, this story has not been edited by NDTV staff and has been published from a syndicated feed.)

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