According to a cryptocurrency exchange CEO, imposing a 15% tax on cryptocurrency transactions may produce at least $90 million in tax revenue for Pakistan each year.
The cryptocurrency tax is 15%.
An CEO from a Pakistani cryptocurrency exchange has stated that if authorities decide to levy a 15% tax on cryptocurrency transactions, Islamabad could raise at least $90 million in tax income. According to the executive, Zeeshan Ahmed, the country general manager of Rain Financial Inc, this is conceivable if Pakistan implements what one article terms “hard and fast regulations.”
According to Ahmed, Pakistan’s neighbor India and the United States already receive billions of dollars in tax income. He stated:
“The US and India are collecting billions of dollars through a 30 percent tax on the profit earned from crypto trading. We can start with a 15 percent tax.”
The Role of Cryptocurrency in Pakistan’s Economy
Ahmed’s sentiments were shared by Aatiqa Lateef, the crypto exchange’s director of public policy. Lateef stated at the same session where delegates addressed the significance of crypto assets in an economy that his company is helping to improve regulators’ perceptions of cryptocurrency.
“We are in constant touch with all regulators including SBP, PTA, FBR and others and will be ready to assist them,” explained Lateef. The director went on to say that the Pakistani government has subsequently formed committees to consider various regulatory possibilities. The committees are also required to make policy recommendations.
Meanwhile, Lateef acknowledges that the Pakistani government’s decision could take between 12 and 18 months. One cause for this could be regulators’ incapacity or lack of resources to police the crypto business. However, with the help of cryptocurrency firms such as Rain, Pakistan may be able to overcome the hurdles, according to Lateef.