Asking for taxes to be paid in bitcoin and USDT shows that the government has already accepted cryptocurrency especially bitcoin as an alternative means of payment in the country, and it is legalized. I don't see any big deal there, as long as it is not a compulsory thing, but your choice of payment method.

I cannot pay my tax in such place with bitcoin, when I don't earn in bitcoin. Assuming, I am paid in bitcoin, I don't see it as any problem to me. My bitcoin is very precious to me, so I will rather use it as an investment than giving it to the government.