Crypto industry to urge Centre to review 30% tax on virtual assets: Report

cnbctv18.com:

Amid clamour for clarity on the recently announced tax on digital assets in the Union Budget 2022-23, major cryptocurrency stakeholders are planning to present a memorandum to the Finance Ministry urging the government to review the rules on virtual digital asset transactions.Talks are underway to formulate and submit a white paper on the impact of the recently proposed tax on the domestic cryptocurrency industry and the economy, Business Today reported, quoting sources.Also read: Budget 2022: Why taxation of virtual digital assets does not make it legalAccording to sources, the memorandum will be drafted by industry leaders and spearheaded by the Blockchain and Crypto assets Council (BACC), which is a part of the Internet and Mobile Association of India (IAMAI). BACC did not respond to queries by the business magazine.The new tax rule will come into effect from April 1, Finance Secretary T.V.

Somanathan told Business Today earlier. “What is changing is the regime of taxation.

It is taxable even before April 1 but not at 30 percent,” Somanathan said.Also read: FM interview exclusive: Crypto asset not currency unless issued by RBI; regulatory bill possible in Budget sessionCrypto industry experts are concerned that the steep tax would dissuade trades that are soaring in India. The industry wants the government to bring down the tax rates at par with the other asset classes, BT quoted Kashif Raza, founder of crypto education platform Bitinning, as saying.

Another concern is that the imposition of tax implies cryptos are being treated on Bpar with gambling and betting.Following the budget announcement, Somanathan had told Bloomberg Television that the government did not consider trading in crypto assets as illegal. “We have