Sushil Modi suggests for tax over 30% on crypto

New Delhi: BJP member Sushil Kumar Modi on Monday asked the government to increase tax on crypto currencies from the current rate of 30 per cent, saying it is a form of gambling and countries like Japan, German, France and Austria have imposed up to 55 per cent tax on it.

Taking part in the discussion on the Appropriation Bill, 2022 and the Finance Bill, 2022 moved in Rajya Sabha by Finance Minister Nirmala Sitharaman, he also called for regulations for online gaming, digital lending, social media and edtech. Modi also said the Information Technology Act 2000 needs to be drafted afresh in order to meet the current and future challenges. "I would like to request the finance minister that the 30 per cent tax that you have imposed on crypto, please consider in the coming days if this tax can be further increased," he said. Arguing that a crypto currency is not a commodity, asset, goods or a service, he said it does not have an intrinsic value and also does not have the backing of any company unlike shares in the stock markets. "Crypto is gambling. It is a form of lottery, a form of horse racing, When you put money in share market you know companies who are behind it but who are behind crypto?," he asked. He said Japan has imposed 55 per cent tax on crypto currencies, German, France and Austria have also imposed up to 45 per cent and the US, 37 per cent.

Modi said on the sale of crypto currency only 18 per cent GST is imposed on the service provider who runs the exchange and it needs to be increased. Since it is not an asset, security, good, commodity, or services, he said, "cryptos are similar to lottery, casinos betting, gambling and horse racing.