Quick facts:
- RAIN CEO Joseph Dallago warned Pakistani officials that a capital gains tax on crypto holdings could fetch Pakistan $90 million in taxes.
- According to RAIN General Manager Zeeshan Ahmed, other countries, such as India and the US, collect billions of dollars from crypto taxes.
- According to Ahmed, Pakistan should explore legalising crypto transactions and regulating the crypto industry.
According to a report, Pakistani crypto exchange CEO Joseph Dallago remarked that if Pakistani authorities decide to apply a 15% tax on every crypto transaction, the government could raise at least $90 million in tax income. Zeeshan Ahmed, the general manager of Rain Financial Inc., also backed the company’s CEO statement. During an interview with a local Pakistani media outlet, he remarked that this would be doable if Pakistan adopted “hard and fast laws”.
Ahmed also emphasised that Pakistan’s neighbours, India and the US, are already receiving 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.”
Ahmed’s thoughts were mirrored by Aatiqa Lateef, the director of public policy at RAIN. Lateef said his organisation is helping to shift authorities’ perceptions of cryptocurrencies while speaking at the same event where delegates addressed the significance of crypto assets in an economy. He noted:
“We’re in daily contact with all regulators, including SBP, PTA, FBR, and others, and we’ll be ready to help them.”
Recently, the Pakistani government has formed 3-sub committees to consider various regulatory possibilities, as reported by CryptoShrypto. The committees are also required to provide policy recommendations.
Meanwhile, Lateef acknowledges that the Pakistani government’s decision might take anywhere from 12 to 18 months. One reason for this might be the authorities’ incapacity or lack of capability to regulate the crypto business. However, with the help of cryptocurrency enterprises like Rain, Pakistan may be able to overcome the obstacles, he concluded.
Read more:
- No real economic benefits from cryptocurrency says Pakistan’s central bank governor
- Pakistan Central Bank clears its stance on use of Cryptocurrency
