Apparently, the United States is not the only place where the crypto-taxation discussion has been a subject of controversy. The Polish Finance Ministry recently issued a tax ruling that will see taxes levied on all crypto transactions regardless of whether they constitute a profit or not. This ruling has sparked a feud between the government and the outraged cryptocurrency traders who have now resorted to protests.
The tax ruling which was published a fortnight ago stated that income form crypto-trading is subject to tax rules and fall under two tax brackets – that is, 18 percent and 32 percent. In addition to this, all the cryptocurrency traders in the country will have to pay a mandatory 1 percent tax on the value of all their cryptocurrency transactions. Furthermore, the taxes that have been imposed on the traders could go as high as a hundred or a thousand times of the traders’ capital investments and this could eventually cripple the crypto trading market in the country.
In response to the ruling, the outraged Polish cryptocurrency traders opted to put together an online petition that argues that the ruling was not only going to wipe out the cryptocurrency community in Poland but will also set the country’s efforts to develop blockchain technology back. As it stands, Poles will be required to file their annual personal income statements on April 30 – the petition that has already been signed by 2,200 people hopes to derail the stipulations of the ruling ahead of this date.
“We are demanding the release of the blockchain technology market and the abolition of all taxes related to this industry,” the petition read. “We want to be active creators of this technology, not just its passive recipients in the coming years, from centralized Polish institutions or foreign entities.”
From a neutral observer’s point of view, the Polish government’s stance on decentralized digital currencies should be enough to keep cryptocurrency traders awake at night. The country’s Prime Minister has previously labeled cryptocurrencies as “Ponzi schemes,” an opinion that is shared by a vast majority of the government officials. As such, the tax levy on crypto transactions stinks of a government-sanctioned attack on digital currencies. But will it be enough to tame the rather spontaneous crypto ecosystem?