30% tax on crypto income is a welcome move but still huge
We are having budget announcements from the government in the last two days. The new financial year is coming up with lots of new financial allocations and changes. People who are invested in crypto were expecting an announcement in this budget and it finally came. It came out as a surprise. Though I was already expecting a good decision by the government on the crypto bill, this isn't a bad announcement I would say.
I personally welcome this announcement. The main reason is that we are not having a full ban on Crypto. That's definitely good news. But having a flat 30% tax on the crypto income is definitely not very welcoming. I was expecting some regulations but 30 percent tax is something not affordable for everyone. People who are in the 30 percent tax slab already will not have a big impact but for people who are not in the tax slab at all, a 30% flat tax would be a big hit on them.
RBI coming up with new cryptocurrency
The finance minister also announced that the government is working on a new cryptocurrency called Central Bank Digital Currency (CBDC). Mostly it would be out in another year's time. It will be good to have that. But there is still no clarity on how the blockchain would be created and what will be the use case, supply, and everything. Another biggest question would be to know if it will be pegged to other popular cryptocurrencies like BTC or USDT.
Government usually calls other cryptocurrencies private cryptocurrencies. But I'm wondering if they already got some clarity on the other cryptocurrencies or not. But good that they did not comment anything on other popular cryptocurrencies during the budget announcement. Something makes me think that the government will still need more clarity on many things and hopefully they will start gaining that knowledge in the coming years. In another 5 years down the line, I'm expecting many countries to launch a digital version of their currency and let people trade or transact on them. That is the only way forward if I'm not wrong.
Would people start disclosing their digital assets to the government
I personally feel that even though there is a 30% flat tax on the crypto income, it can be hard to track or trace it 100%. There will still be lots of people who would not be willing to pay that 30% tax and would find shortcuts. Things similar to this are already happening in the share market. Not all people are disclosing their share market income and only in recent years have they made Aadhar mandatory to get some visibility. But still, people don't disclose all their assets to the government and pay the expected tax.
The thirst is more towards a taxless economy. Many people like decentralization because of the very fact. Even though I like decentralization, I still believe that centralization is important to maintain law and order. Otherwise, people who have the money will be able to rule the world and we might possibly get back to King's rule. Things can get scary if there is no control by somebody like a well-formed government.
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i take it this is india??, at least clarity is a good thing here. no ban jut tax. people will lap it up still.
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30% flat tax on everything is horrible lol Say you sell something for $100 ETH well you now owe the government $30. Now you go and convert that ETH to Fiat. You pay a ETH Fee of $10 and then pay another 30% fee because of the transaction. and you're pretty much left with nothing while the government just took about 50%+ of your earnings and 10% was taken by the Ethereum network. What a joke!
Just use something that is not ETH. Horrible token. If you tax only when you change your crypto back to fiat (or other real thing like services, wares) 30% is rather OK in my opinion. 10 or 15% would be even nicer.
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Yeah you’re correct by saying a centralized government helps in maintaining law and order but what happens when those in charge suddenly get power drunk and make harsh decisions that are in no terms favorable? I think these are issues decentralized blockchain will fix when it eventually comes into full play . Enlightening write up I must say, kudos and best regards!!
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I am just super happy they did not do a complete BAN
30% is high but can be addressed at a later date.
I hope this will help more of the India population feel good about joining projects like Hive. or even India Dev people learning and working on blockchain projects.
30% is a bit too high as a flat tax. However it does allow you to legally do things and I think that 30% might be a reason why they want people to use their CBDC when it does get released.
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Yeah possible. I'm also thinking the same. As long as people are free to come up with their own projects by paying taxes.
once it's taxed it will never go away. Crypto here to stay now.
Yeah let it stay. Good for a start.
I think, many would sell before March, if price favors them - especially who would pay less tax now before it becomes law. They should have made different tiers at least protecting small investors - but who cares.
Yeah they need a better team in deciding such things.
Huh? You WELCOME a 30% tax on crypto. Are you shilling for the government?
No way what I'm saying is that 30% tax is better than a full crypto ban.
I don't find either appealing. If I had considerable crypto holdings that would incur a 30% tax, I would emigrate to a more crypto friendly country. This is precisely what a friend of mine is doing.
Yeah I know people are doing that. But what if there is so much in the country we live in and we cannot leave all those and move. For me personally I have a Day job and that's my primary source of income. I treat crypto mostly like my retirement funds.
By the way even if we have 30% tax on crypto, we still have ways around it.
"even if we have 30% tax on crypto, we still have ways around it."
Now you're talking. ;-)
30% tax is very high, Govt khuch actha korte nahi, kuch karne jao usmebhi bhadha deta hai.
Acha hai ab cripto band nahi hai india me, ehi acha news hai 😃
30% is quite excessive... Here in the United States our Cryptocurrency is taxed as capital gains so if you go long on Crypto, you pay a MAXIMUM of 20% if you're a wealthy trader. If you sell after going long and you make a trade that is less than $40,000 you pay 0% in TAXES.
This is better. This is how it should have been, here too.