Indian MP Raghav Chadha Blasts Harsh Crypto Tax Policy
Indian MP Raghav Chadha has publicly criticized the country’s current crypto approach, arguing that a punitive tax regime imposed in the absence of coherent regulation is harming the domestic ecosystem. Lawmakers say steep levies on transactions and gains for virtual digital assets (VDAs) are prompting capital flight and encouraging startups and retail users to relocate or conduct business offshore, eroding innovation and participation at home.
The renewed push to legalize VDAs aims to replace the current stopgap of hefty taxes with clearer rules that balance investor protection, compliance, and competitiveness. Analysts warn policymakers that continued reliance on aggressive taxation risks shrinking the taxable base and losing talent, while a calibrated regulatory framework could help retain businesses, protect consumers, and foster fintech growth.