It is easier to see the profit than the opportunity of growth and development. Imposing high taxes on crypto transactions will not only discourage people to invest in digital assets but make them keep their money and trade it overseas. India is taking steps back into crypto adoption process by setting huge taxes for users.
Where does this come from?
The Indian executives do not have so much trust in digital space and its assets. In order to support this affirmation, we need to mention the comparison that they are making between crypto trading and gambling. More specifically, India’s approved new Finance Bill imposed a 30% crypto tax on digital asset holdings and transfers. This is the usual pay rate for horse betting and gambling incomes and the basis of set crypto tax.
Whether you are into cryptocurrency trading or NFT collecting, you will still need to pay the 30% to the state of India because of your virtual space related transactions. In addition, we might mention another 1% tax deduction at source for any action regarding crypto you might take.
Is this good or bad?
It depends from which point of view are you looking at it. Cryptocurrencies were created so there will be no more governmental control over people’s money. But paying a tax on every transaction you make that varies due to different amounts you trade, it’s not privacy. It is just another way the state has full control of any financial information about an individual.
Therefor, as state structures see it, it’s a good thing to get more money to the local budget and to know every step the citizens are making with their money. As for people, the payments are big enough to make them rethink the decission of investing in crypto within Indian territory.
Do you think the market’s growth will survive this new tax law?