India's tax policies have made cryptocurrency trading economically unviable and trading on cryptocurrency exchanges implausible.
Pankaj Chaudhary, a representative of the Ministry of Finance, said in an address to Parliament that India's tax authorities collected about $19 million from cryptocurrency transfers during the fiscal year.
For the fiscal year 2022/2023, which ended on March 31, the Indian government introduced a new method of taxing digital currency transfers, whereby any transaction in excess of 10,000 rupees (about $125) is taxed at 1%.
From July 1, 2022, the new rule was implemented. In November, the Finance Minister told Parliament that 604.6 million rupees (about $7.4 million) had been collected as a result of the new tax system. Considering that tax rates have slowed down the development of the industry, industry representatives asked to reduce the rate to 0.05-0.1%. However, the government has not yet supported this idea.
Earlier, India's finance minister said that G20 members are discussing the possibility of introducing regulation for crypto-businesses.
