Indian panel to consider sales tax on cryptocurrency next week
An Indian ministerial panel will meet next week to discuss the Goods and Services Tax on cryptocurrency transactions, people with knowledge of the matter said.
The panel, which includes federal and state finance ministers, is seeking to broaden the tax net to more effectively track transactions in virtual digital assets, people spoke to the media, citing regulations. .
The panel is meeting from June 28 in the north Indian state of Chandigarh for two days.
People said the panel is unlikely to finalize a rate in the upcoming meeting but may discuss keeping it in the highest tax slab of 28%.
A finance ministry spokesperson did not immediately respond to calls seeking comment.
Earlier this year, Finance Minister Nirmala Sitharaman imposed Levy of 30% on proceeds from transfer of virtual assets and 1% tax at source on all crypto transactions in order to assess the size of the crypto market in the country and track users.
The move was seen as removing the uncertainty regarding the legal status of crypto transactions.
However, there is still no clarity on imposing sales tax on digital currencies due to ambiguity in its treatment as goods or services and lack of regulatory framework.
Bloomberg previously reported that the federal government is already working on a law to regulate or tighten the provisions, although this is expected only after a global consensus on regulating such assets.
Digital currencies, along with other riskier assets, have been under pressure throughout the year as global central banks began raising interest rates to curb rising inflation.
Bitcoin is down almost 50% this year, and Ether is down 70%.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)