I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.
Yes, the government can tax Bitcoin if we will change it to fiat or vice versa. It is already happening in African and Asian countries. In our country, our Central Bank already created a regulation that stated all Bitcoin conversion is submitted to tax. There are a transaction fee and remittance tax on the transaction that I have made.