Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

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Authorities in Poland have realized how inapplicable their decision to tax all crypto transactions really is. A high-ranking official from the Finance Ministry said in an interview that his department “accepts the irrational effect” of the tax it wanted to levy on every purchase and sale of cryptocurrency, regardless of their profitability. Other reports suggest that Warsaw has no intentions to strictly follow the letter of the current tax law before it develops a comprehensive approach towards the crypto sector.  Also read: The Government Dilemma: How To Tax Something One Pretends Does Not Exist Temporary Abandonment of Irrational Ideas The Polish Finance Ministry intends to issue a new regulation to “temporarily abandon” the tax on transactions with virtual currency. It also plans to carry out “in-depth analysis” and prepare “system solutions” to regulate this particular economic space. The move comes after an interpretation of the tax code in April prompted angry reactions from the country’s crypto community, an online petition, and even protests in Warsaw. “The Ministry of Finance has accepted the irrational effect of the PCC tax on cryptocurrencies,” Deputy Finance Minister Paweł Gruza recently told Business Insider Polska. He was commenting on his department’s decision to impose the Polish “Civil Law Transactions Tax” (PCC in Polish) on all crypto transactions. “So far, the Ministry hasn’t done anything about the PCC, except for recognizing cryptocurrencies as property rights, which automatically means obligation to pay the civil law transactions tax,” he noted. Gruza was referring to a controversial decision to…
Source: Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

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