A French news website reports that the lower house of parliament in France has backed a plan to bring taxes on BTC profits in line with other capital gains tax in the country. The house is making plans with finance commission.
Bitcoin (BTC) Price Today – BTC / USD
Presently, BTC sales have a tax of 20 percent more than the traditional sales of stocks or traditional capital gains tax attached to them. This is also the case for other securities in the country.
Eric Woerth is the personality behind this bill and he is also the finance committee chairman of the body. The bill hopes to bring the tax rate for the sales of Bitcoin from the 36 percent rate to a flat rate of 30 percent. The aim is to tie it with the same rate as capital gains sales.
However, this development was not enough for many French citizens. One individual stated that the proposed law as well as the previous taxes inhibit innovation.
Bitcoin purchases are covered by this tax
Le Figaro, a French outlet says the tax won’t apply to strict sales of BTC like Coinbase and Localbitcoins to realize profit. However, it also applies to using BTC to purchase items. An example is using it as a payment means of acquisition of services or goods.
The European countries far from the sole jurisdiction to tax BTC in this manner. However, the regressive taxation method stifles the technology that safely offers citizens of the country a powerful way to shop.
In addition, when a person makes use of Bitcoin to buy a product he is not getting the real world value in the same way that another person who use a coin. The person does not turn around and invest when the market nosedives. For instance, this is the strategy of many investors of BTC and this generates a lot of taxes.
The bill will be ready next year
The tax reduction plan will be effective when it passes legislative sessions and is included in the budget for next year. However, it will be in line with other plans by the government of France to create a more friendly and regulated environment for digital currencies.
Bitcoin price analysis
Bitcoin is currently being traded at $6,507. The digital currency remains on a corrective decline. Its price continued to fall on Thursday, even though it was a part of the correction to previous growths in recent days. Presently, buyers can’t give the sellers competition, so we expect the corrective decline to continue for a while.
In the short term, we can expect a downward correction that aims at $6,500 dollars. If the price at this level finds the needed support, then a rebound should be expected along with an upward trend.
The alternative option here is a breakdown of the support zones at the upper boundaries with a drop in value to $6,363.