India's Finance Minister says taxing crypto is the government's sovereign right. Legality doesn't matter
One really has to be the most obnoxious arrogant human being to say what India's Finance Minister has said about cryptocurrency taxation. She was quick to introduce taxation on profits generated from cryptocurrencies. However, when it comes to answering questions about cryptocurrency legitimacy, a humble answer should have sufficed. Something along the lines of "The legality will be established, if at all, in a separate bill. Right now we are only levying taxed on profits generated from an asset class". However, that was not to be.
The government is still open to banning cryptocurrencies. In response to a question about the legal status of cryptocurrencies in India, the Finance Minister said that the legal status will be determined upon further inputs from experts. This only goes to show that the government is no different from speculators in the crypto space. The 'Fear & Greed' Index is a well-known concept in the crypto community. Indian Governments' behavior is equivalent to the situation of Full Greed!
Ideally, taxation should be levied on a defined asset class. The government firstly should first be focussed on understanding digital assets and the risk to financial stability that emanates from them, that is preventing the government to legalize cryptocurrencies, and then go forward with taxation. The whole behavior of the government is pure shameless.
Assuming that the risks highlighted by the Governor of India's Central Bank are true, then is the government willing to put India's financial stability at risk only to make some tax revenue? Is the government almost bankrupt that they have to generate any and all forms of tax income, even tax assets that have no definition under the law?
I hope that post these recent comments, someone takes legal action against the government or files a PIL (Public Interest Litigation). On what basis is the government taxing cryptocurrencies? The central bank of India was stopping banks from dealing with crypto exchanges. What gave them that right? If crypto isn't defined in the Indian constitution, then what is giving the government the right to tax it? The government will tax digital assets. What are digital assets? Is the budget document a bill that can become law?
I would have been happier if the government would have demonstrated some humility in its approach towards cryptocurrency taxation. If they want to tax it, then even they should be leaning towards legalizing it. The government first levies taxes. Then a government-appointed bureaucrat highlights risks associated with them and says cryptos are worthless. Then the government is busy casting doubts over the current and future legal status of cryptocurrencies in India. What a load of bullsh*t!
Posted Using LeoFinance Beta
