An executive from a cryptocurrency exchange said that Pakistani tax revenues could reach at least $90 million a year if they impose a 15% VAT on cryptocurrency transactions.
15% Tax on Cryptocurrencies
According to an executive at a Pakistani cryptocurrency exchange, Islamabad will generate $90 million in tax revenues from cryptocurrency transactions if authorities implement a 15% cryptocurrency transaction tax. The executive, Zeeshan Ahmed, the country general manager at Rain Financial Inc, claimed this would be possible if Pakistan adopts what one report calls “hard and fast regulations.”
In comments published by The International News, Ahmed claimed that Pakistan’s neighbor India and the United States are already getting billions of dollars in tax revenues. He claimed:
India and the US are currently collecting billions through a 30% tax on crypto trading profits. A 15% tax is all that’s required to get started.
Role of Crypto in Pakistan’s Economy
Ahmed’s sentiments were echoed by his fellow executive, Aatiqa Lateef, the crypto exchange’s director of public policy. Speaking at the same event where attendees discussed the role of crypto assets in an economy, Lateef suggested his company is playing its part in helping to change regulators’ perception of cryptocurrencies.
“We are in constant touch with all regulators including SBP, PTA, FBR and others and will be ready to assist them,” explained Lateef. According to the director, Pakistani authorities have since established committees that can discuss various regulation situations. These committees will also be expected to suggest policy alternatives.
Lateef acknowledges, however, that the Pakistani government could delay its decision for up to 12-18 months. One of the reasons for this could be regulators’ lack of capacity or inability to police the crypto industry. Lateef indicated that Pakistan might overcome its challenges with the support of cryptocurrency companies like Rain.
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