TL;DR Breakdown
- India is looking to impose a crypto tax on their citizens
- Israel and Russia are also looking to impose a tax regime on cryptocurrency
After imposing a ban on crypto firms in the country for a long while that was later upturned by the Supreme Court of the country, India has now come up with a new proposed regulation that would see them impose a 18% crypto tax on huge Bitcoin transactions.
A division of the country’s ministry of finance, Central Economic Intelligence Bureau, has advised the Central Board of Indirect Taxes and Customs (CBIC) to impose a Goods and Services Tax (GST) on Bitcoin which would lead to extra funds being gathered for the coffers of the government.
Like we mentioned earlier, the government of India had earlier imposed a two year ban on crypto firms in the country. This prevented the firms from carrying out any activity in the country before the apex court overturned the ban.
Since then, India has grown to overtake China has the country with the highest Bitcoin peer-to-peer trading volume. Despite this noticeable growth, India’s government had earlier hinted that it was going to outrightly bam crypto usage in the country. This has led to consternation and criticism among the crypto community.
It however appears that the authorities are bringing in this new crypto tax as a response to the criticism they have earlier faced.
India is not the only country looking to impose crypto tax
India is not the only country that is looking to impose a crypto tax on its citizens. We recently reported of how Israel is also planning to impose a tax regime on the residents of the country.
According to the report, the Israeli Tax Authority (ITA) was already contacting their citizens who held digital currencies to declare their crypto assets for taxation purposes.
Russia had also announced its plans to impose a crypto tax on its citizens. The Bank of Russia had proposed that taxes be demanded from mined cryptocurrencies in the country. The bank wants to place crypto assets on the same pedestal as treasury findings.
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