New plan to tax blockchain ecosystem in the works amid wide adoption of NFT

The push comes in the backdrop of surging investment by Indians in cryptocurrencies

With the wide adoption of non-fungible tokens (NFT) in the country, the government is again examining the proposal to tax the blockchain ecosystem, which includes cryptocurrencies and such digital tokens.

The use of NFTs has picked up at a large scale, with celebrities endorsing them and they have been been commercialised, an official said. Investment in cryptocurrencies has also increased lately and there is a need to tax them, he added.

The tax department wants the framework to tax the use of blockchain for commercial purposes to be implemented even before the government brings in legislation for cryptocurrencies and regulating the official