With the second largest population in the world after China, India has not given bitcoin legal currency status. In addition, the country has a delicate relationship with this sector, from which it has even been banned.
Considered an emerging country, the population of India is aware of bitcoin and its advantages but the government seeks to make access difficult.
In India, one of the taxes created in recent years is the Goods and Services Tax (GST). When approved by the local parliament, it reached the status of indirect Tax Reform, as it brought together several taxes in one place.
And to monitor and ensure that the defined rules are being followed, the GST Council was created. According to CNBC TV18, the local government wants to associate cryptocurrencies with lotteries, casinos, races and betting, putting these as a kind of game of chance.
In this way, the incidence of taxes to the sector would be 28%, a high taxation that puts pressure on bitcoin in India. It is worth remembering that this is not a final decision and should be aligned at the next meeting of the GST Council, which also analyzes the use of cryptocurrencies as a means of payment.
The country charges 18% tax on online games that don't involve gambling, but those that do, like casinos, are taxed at 28%. The Indian taxation body also notes how cryptocurrencies are coming to the country to tax, as if it comes from foreign exchanges this makes local platforms only transaction intermediaries, which will also be evaluated.
With the possible novelty of more taxes in a large country, bitcoin registers the most drop this Monday (9), losing 5.4% and operating at US$ 32,000. In Brazil, in local currencry Real, the price of bitcoin lost 5% in the last 24 hours, quoted at R$ 169,000.
China banned before, what could that mean?
As China banned bitcoin, its mining and business in 2021, seeing India make it difficult for the sector to function is not positive. Thus, the market awaits more definitions from the country, which does not have clear rules on the functioning of these financial technologies yet.
Source: Livecoins
