Indian crypto users will need to watch out, as the country may impose a Bitcoin tax of 18% for BTC transactions soon.
According to the Times of India, the Indian government is currently assessing a proposal to charge 18% goods and services tax (GST) on BTC transactions. Cumulatively, the government may exact around 40,000 crore Indian rupees (about $.5.5 billion) per year.
Currently, the Central Board of Indirect Taxes and Customs (CBIC) is reviewing the proposal submitted by the Central Economic Intelligence Bureau (CEIB). Additionally, CEIB suggested that the government categorize Bitcoin as an ‘intangible asset’. With this, they may apply the said Bitcoin tax for all transactions.
At the moment, the proposal only covers Bitcoin transactions and not all cryptocurrencies.
This news comes after India made a series of back-and-forth laws and regulations regarding cryptocurrency. In September, the Indian government revealed that it is planning to stop all cryptocurrency trading after enabling it since March 2020. Prior to this, the Reserve Bank of India (RBI) banned crypto trading in 2018.
All of these came after the Modi administration passed the demonetization program in 2016, legislating crypto trading for the country.
Meanwhile, the news may affect many crypto exchanges and firms that have expanded to India. Some of these include PayBito, Cashaa, and Binance. In fact, PayBito has already started accepting the country’s native fiat within its platform.