Media reports India plans to impose a 2% tax on cryptocurrency bought on foreign exchanges

The Indian authorities may impose a 2% tax on cryptocurrency purchased on foreign exchanges, writes CoinDesk citing local media.

The Indian tax department is examining the feasibility of expanding the so-called “Google tax” on digital assets. The levy is charged for services provided in the country by foreign e-commerce companies.

“Judging by the wording and definition of the new equalisation levy, it seems that it will also apply to cryptocurrency bought on exchanges outside India,” said Girish Vanvari, founder of Transaction Square.

In his view, if the initiative is implemented, trading platforms would have to add 2% to the asset prices.

Amit Maheshwari, a partner at AKM Global, doubted the likelihood of such a levy being introduced.

“In the absence of any guidelines on handling crypto assets, there is no clarity on how to treat them under tax law and FEMA,” said Maheshwari.

Earlier Reuters reported that India would consider a bill banning crypto asset operations, which envisages criminal and administrative liability.

In the same month, authorities asked crypto-related companies to disclose their assets.

In May, media reports said the Indian government would discuss forming a committee to study the possibility regulating cryptocurrencies as digital assets, as well as various use cases for blockchain.

As reported in June, Bloomberg sources described plans by authorities to amend the bill banning cryptocurrencies and consider regulating this class of assets.

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