By Richard Hines
The Bharat Web3 Association which has a number of prominent crypto companies as members, like Polygon, CoinDCX, CoinSwitch, Coinbase, WazirX, ZebPay, etc., has directed a letter detailing the association’s concerns about the state of the Indian crypto market.
The association particularly emphasised the need for the taxes levied in the crypto space to be reviewed and that clearly defined regulations should be strictly enforced in the industry.
A meeting between the representatives of the association and the Central Board of Direct Taxes (CBDT) is expected to take place in the coming week.
High Crypto Taxes Are Bad For The Industry’s Growth
The Bharat Web3 Association (BWA) has contended that the sheer volume of taxes levied on the crypto firms in India is quite hindering the overall growth of the crypto industry.
In its draft to the Indian Finance Ministry, the association explained how the newly introduced taxes will cripple the industry further.
In the 2022–2023 Indian budget, there was the introduction of a 30% capital gains tax and a 1% transaction tax deduction (TDS), which they said had a large negative impact on the Indian crypto economy.
It was in the wake of the introduced taxes that a 90% decline in the Indian trading volume occurred, and as such, stakeholders in the crypto industry have been calling on the government to reduce the transaction tax deductions (TDS) to 0.1%.
A meeting between the representatives of the association and the Central Board of Direct Taxes (CBDT) is likely to take place next week, where both parties are expected to reach a compromise.
We need Well-defined And Enforceable Regulations
In addition to the demand for favourable taxes, the association has also expressed the need for a set of rules and regulations that are strict and well-defined.
This undoubtedly is in light of the famous crypto exchange’s fall, which has led to a number of unfortunate incidents in the industry.
The association attributes the fall of FTX to the lack of a governing body in the crypto industry and has pledged its support to the government in drafting a well-defined set of rules and regulations for the Indian crypto industry.