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Below the Quote on Expectations from Union Budget 2024 - Web3/Blockchain Sector by Dilip Chenoy, Chairman, Bharat Web3 Association

Bharat Web3 Association Calls for Tax Reductions and Regulatory Clarity in Upcoming Union Budget

The Bharat Web3 Association (BWA) is pleased to see our finance minister Nirmala Sitharaman presenting the Union Budget for another year. As an industry body representing India's virtual digital asset (VDA) sector, we hope the government will consider our expectations for the upcoming budget.

The Indian Finance Ministry invited the BWA to pre-budget consultations. We presented our demands and expectations, including a key request for a reduction in the transaction tax from its current 1% to 0.01%.

We also requested the Finance Ministry to allow the setting off of losses on one VDA transaction against profits on other transactions. We advocated for the government to consider income from the transfer of assets on par with other income sources. We believe that a lack of regulation has caused the Indian VDA industry and the government to lose significant revenue in recent years. A lack of clear regulations has forced Web3 startups and entrepreneurs to move to more VDA-friendly jurisdictions. India's Web3 startup ecosystem is held back due to the lack of regulation. The potential loss of technical expertise from the country in the blockchain and Web3 space is a concern we must recognize.

We urge the government to implement clear, industry-friendly regulations, and tax reforms that allow this emerging sector to flourish and create new opportunities and revenue streams. Finally, we reiterate our appreciation for the support and consideration Finance Minister Sitharaman has shown to the Indian industry thus far.

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