Citing a source, CNBC-TV18 plans to increase the tax burden on the Indian cryptocurrency sector.

“The proposal is to charge 28% in the near future. GST from services and all activities related to digital assets, ”explained the interlocutor.

According to him, the matter is currently under review by the law committee of the Goods and Services Tax Council. After approval, the initiative will be submitted for evaluation and approval.

GST is an indirect tax paid on all goods and services in a country. In the current system, the rate of cryptocurrencies classified as financial services by exchanges is 18%.

In India, a 28% fee applies to the online gambling industry. Sources explained that the purpose of the proposal is to align cryptocurrency-specific taxes with rates applied to gambling, lotteries and horse racing.

Previously, the country’s authorities imposed a 30% tax on profits from cryptocurrency transactions and a controversial 1% fee under the following conditions. TDS. Prior to this, the Ministry of Finance, when calculating this, determined that traders cannot make up for losses on one digital asset with profits on another.

In recent years, disclosures by Indian authorities of legal initiatives related to cryptocurrencies have ranged from a complete ban of digital currencies even with criminal liability to possible regulation as assets.

In January 2022, Prime Minister Narendra Modi called for the development of a unified approach to establishing a regulatory framework for the crypto industry.

Recall that in May the Computer Response Team issued a directive requiring crypto exchanges to retain customer data for five years. That’s why the authorities plan to eliminate the facts of tax evasion.