The governments of Venezuela and India have approved new tax laws aimed at cryptocurrency. The tax rates are up to 20 and up to 30 percent respectively.
Venezuela’s goal is to collect 2 to 20% from each transaction involving any currency other than the national currencies. These are the bolivar and the Venezuelan government’s own oil-backed cryptocurrency, the Petro, which was to save their economy.
Total devaluation of the bolivar
The bolivar has repeatedly been devalued; in 2021 alone it lost more than 70% of its value. In the past decade it has lost nearly all of its value.
The use of bitcoin has skyrocketed in Venezuela in the last few years. Thousands of local businesses have switched to cryptocurrency in an effort to survive hyperinflation. Last year in the autumn large airports began preparing for payments for tickets and other services in cryptocurrency, with bitcoin in the lead.
Lowering the national dependency on cash
India is the latest to join the ranks of countries with their own cryptocurrency. The digital rupee will be launched in the fiscal year beginning April 1.
A new tax law for existing digital currencies was announced at the same time. This has led to phenomenal growth of digital currency transactions. India will levy a tax of 30% on their sale and a 1% tax at the source.
They promise fast and efficient payment from the virtual rupee. Indian Finance Minister Nirmala Sitharaman said it should mean cheaper and more efficient management of currency. India plans to introduce the national cryptocurrency gradually, with the goal of decreasing the high national dependence on cash.