Indian cryptocurrency investors could face a 2% levy on transactions made through foreign-owned crypto exchanges operating in the country, according to a report by the Economic Times.
Fast facts:
- An existing law known as the “Google tax” already applies the levy to foreign-owned e-commerce companies for services provided in India, but experts are now speculating as to whether it could be applied to crypto exchanges as well.
- Girish Vanvari, founder of tax-advisory firm Transaction Square, told the ET: “The way the new equalization levy is worded and defined, it appears that it will also be applicable on cryptocurrency bought from an exchange not based in India.”
- Although there is currently much speculation in the industry, confirmation from tax authorities has yet to emerge that the law might be enforced in such a way.
- Indian lawmakers and industry stakeholders began reviewing elements of legislation seeking to ban cryptocurrencies earlier this month. The bill in question had been drafted for the budget session of parliament, but was not introduced.