Indian MP says crypto is like gambling, wants to tax at 50%

The MP explained that the Indian government is working on crypto legislation and needs to decide in the near future whether crypto is an asset, a commodity, a stock, a good, or a service

An Indian parliament member says crypto is like gambling and must be taxed at a very high rate, such as 50%.

Indian Member of Parliament (MP) Sushil Kumar Modi shared his view on cryptocurrency in an interview with Forkast, published Tuesday. Modi is a member of Rajya Sabha, the upper house of India’s parliament.

He recently made headlines when he urged the Indian government to impose more than 30% tax on crypto income prior to Rajya Sabha passing Finance Bill 2022. He told the publication that the Indian government should tax crypto income as much as 50%.

Modi explained: The government has not said in so many words that crypto is like gambling. It is like lottery, it is like a casino, it is like horse racing and in all these things the tax rates are very high.

Besides wanting to tax crypto income at 50%, Modi also suggested levying 28% goods and services tax (GST) on the entire crypto transaction value, instead of only applying 18% GST on the service provided by crypto exchanges.

Like gambling, horse racing, casino, lottery, the GST should be on the entire transaction value, he opined.

The MP then compared crypto to traditional investments. Stating that stocks have companies behind them, ‘nobody knows who is behind these cryptos,’ he pointed out.

‘We need to discourage and disincentivise’ trading and investing in the asset class, the lawmaker emphasized.

He explained that the Indian government is working on crypto legislation and needs to decide in the near future whether crypto is an asset, a commodity, a stock, a good, or a service.

The MP noted that it is important for the Indian government to discuss crypto legislation with the International Monetary Fund (IMF) and the World Bank, elaborating: The government of India should not be in a hurry and they should come up with a consultation paper.