Almost 25,000 Indians Sign Petition To Reduce 30% Crypto Tax

While the acceptance of private cryptocurrencies is a thought too difficult for most governments, the people are finding it harder to accept the regulations being laid upon them.

In the case of India, citizens are raising their voices in less than 48 hours of the announcement.

Crypto Tax Demanded To Be Slashed

This is the demand of the 23,953 individuals that have signed the petition which aims at requesting the government to introduce reasonable tax policies.

While India has been rather reasonable with the existence of cryptocurrencies in the country, about 4 years ago in 2018, cryptocurrencies were completely banned in the country.

However, since the ban uplifted in 2020, millions of people joined the crypto space both as investors and developers. Thus it makes sense why they are negotiating for reduced taxation instead of blatantly fighting back and suffering an absolute ban.

The petition states:

“Crypto Industry has been actively seeking regulations and has extended its complete support to the Government to ensure transparency in activities and also supported the authorities in their Investigations.

The Proposals put forth by the Honorable Finance Minister in Budget 2022 placed crypto at the same footing against social evils like Betting and gambling. This can have a devastating impact not only on the Industry per se but the economy as a whole.”

Adding on to it, the petition reads:

“Hence, In the best interest of our country, Investors, and the industry as a whole, we urge you to reconsider the following budget proposals. The Industry wants to help the Government bring out regulations and also establish India as the global hub for crypto which aligns with our vision of achieving a $5 Trillion economy.”

The said reforms in the crypto tax appealed for the current 30% tax rate to be brought in line with the existing tax rate for stock market transactions.

Secondly, they requested for the proposed 1% TDS on every crypto transaction to be reduced to 0.05% and at the same time allow loss set-off and carry forward citing the unpredictable and frequent volatility of the market.

Volatility of the Market

This continues to be a significant issue when it comes to seeking regulatory approval since no government would want to consciously risk their citizens’ money, which in return affects the country. 

Not too long ago the market suffered the most terrible crash in almost a year when almost $1.3 trillion were wiped out of the market. To recover those losses is a long journey and the repeated roadblocks of regulations are only making it harder.