YEREVAN (CoinChapter.com) – We all chose our battles to fight. Sometimes our choices place us on the wrong side of history. Like many times in the past, human advancement has been met with strong opposition from people too close-minded to appreciate it. Now that cryptocurrencies are here, those that feel threatened by them are all out to stop it. Indian Member of Parliament Sushil Modi does not want to end his war on the crypto community. Cryptocurrencies to him seem to be what heliocentrism was to the Catholic Church. But why fight a losing battle?
A member of the ruling Bharata Janata Party (BJP), Sushil Modi has been trying to warn us of the ‘evil’ that cryptos and NFTs may bring. For some unknown reason, he has made this his personal little crusade. He now wants the Government to increase the tax levied on income from cryptocurrencies.
Earlier this year, the Indian Government faced widespread criticism and ridicule when it announced a massive 30% tax on crypto gains. While calls to reduce the exorbitant tax bracket haven’t stopped since then, there are some people like Modi who are not satisfied.
Congratulating Finance Minister Nirmala Sithararman for taking a tough stance on crypto, the former Deputy Chief Minister of Bihar asked her to revisit her decision and increase the taxation on digital assets.
“I would like to request the finance minister that the 30 per cent tax that you have imposed on crypto, please consider in the coming days if this tax can be further increased,”
As expected, the crypto community is not pleased. To make matters worse, he compared cryptos to gambling and horse racing. Let us just say he obviously has no idea what he is talking about despite being one of the members of the Parliamentary Standing Committee on Finance.
We all fear what we do not understand. Cryptos are beyondthe MP
As the old saying goes, “What we don’t understand, we fear. That, what we fear, we judge as evil. What we judge as evil, we attempt to control. And what we cannot control, we attack.”
The author of the above lines is unknown, but the sentiment expressed is descriptive of Sushil Modi’s stance on cryptos. Because he does not understand cryptocurrencies, he is ready to dismiss them as evil. Perhaps to his mind, he is the knight in shining armor called to defend the traditional economic system. But don’t take my word for it. See what he actually said when arguing that cryptocurrency is not a commodity, asset, goods, or service.
“Crypto is gambling. It is a form of lottery, a form of horse racing… When you put money in share market you know companies who are behind it but who are behind crypto?,”
Really? Crypto is horse racing? How detached from reality can one be? Also, does he really not see the contradiction between classifying something as illegal and dangerous and yet wanting to share profits by levying a tax on gains? It is like saying selling drugs is bad, but hey, give us 30% of your profits and you are good to go.
But if you thought a high tax on crypto income is enough to satisfy the parliamentarian, you are so wrong. Modi even demands an additional Goods and Services (GST) tax on the total transaction value of crypto.
Why is Modi presenting half-truths about cryptocurrencies tax?
To back his argument for higher taxation, the lawmaker referred to other countries that supposedly had higher tax brackets for crypto gains. However, while he was at it, he did not hesitate to present half-truths and misleading data.
Modi claimed Japan has imposed a 55 percent tax on cryptocurrencies, while Germany, France, and Austria have imposed up to 45 percent. Crypto tax in the US, according to him, is 37 percent.
In Japan, crypto tax depends on an individual’s earnings. There is no blanket tax. Only the highest earners pay as high as 55%.
The same goes for Germany. Short-term profits (one year) above Є600 are subject to taxation. However, they also depend on the tax bracket the trader falls in. France and US do not have blanket tax percentages either, as claimed by Modi.
As evident, those who oppose crypto will go to any height to stop it. Interestingly, they will also claim to be doing it because they care about us. Right before the Catholic Church executed the Italian thinker Giordano Bruno by burning him alive on the stake in 1600, he took one last strike at them.
“Perhaps you who pronounce my sentence are in greater fear than I who receive it,”
Everyone in the crypto space will be wondering what the Sushil Modis of the world are afraid of when they declare war on cryptocurrencies? But then again, we know the answer. Freedom is scary to those that want to deny it.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he urrently works as a reporter at CoinChapter.