Crypto sales tax at 28%? Discussions next week

Crypto sales tax at 28%?  Discussions next week

India panel to consider new week sales tax on cryptocurrency

An Indian ministerial panel will meet next week to discuss a goods and services tax on cryptocurrency transactions, people with knowledge of the matter said.

The panel, made up of federal and state finance ministers, is trying to broaden the tax network to track transactions in virtual digital assets more effectively, the people said, refusing to identify under media talk rules.

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

The panel is not likely to finalize a rate at the next meeting, but discussions may be held about placing it in the highest tax bracket of 28%, the people said.

A spokesman for the Ministry of Finance did not immediately respond to calls for comment.

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

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

However, there is still no clarity about 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 enforce provisions, although it is expected only after a global consensus emerges on regulating such assets, Bloomberg had previously reported.

Digital currencies have been under pressure all year along with other risky assets as global central banks have begun to raise interest rates to combat sore 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 is published from a syndicated feed.)

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