Pakistan could generate tax revenues of at most $90 million per year if the authorities impose a 15% tax for cryptocurrency transactions. This is according to an executive from a cryptocurrency exchange.
15% Crypto Tax
A Pakistani executive from a cryptocurrency exchange claimed that Islamabad could generate tax revenues of at least $90million if the authorities impose a 15% tax on cryptocurrency transactions. Zeeshan Ahmad, the country manager at Rain Financial Inc claimed that this is possible if Pakistan adopts “hard and fast” regulations.
In comments published in The International News, Ahmed stated that Pakistan’s neighbor India is already receiving billions in tax revenue. He stated:
India and the US are collecting billions of dollars by imposing a 30% tax on crypto trading profits. A 15% tax is all that’s required to get started.
The role of crypto in Pakistan’s economy
Aatiqa Midef, the director of public policy at the crypto exchange, echoed Ahmed’s sentiments. Lateef, who spoke at the same conference where participants discussed the role crypto assets play in an economy’s future, suggested that his company is helping to change the perception of regulators about cryptocurrencies.
Lateef stated that “We are always in constant contact with all regulators, including SBP and PTA and FBR and other and will be available to help them.” Lateef said that the Pakistani government had since established committees to examine different regulatory scenarios. These committees will also be expected to suggest policy options.
Lateef acknowledges that it may take 12 to 18 months for the Pakistani government to make its decision. This could be due to regulators’ inability or lack of capacity to regulate the cryptocurrency industry. Lateef stated that Pakistan could overcome these challenges with the help of cryptocurrency companies like Rain.
