Pakistan Could Produce More Than Rs. 20 Billion in Taxes by Legalizing Crypto Trading
Mr. Zeeshan Ahmed, Country General Manager for Rain Financial Inc., claimed that simply allowing crypto trading in Pakistan could produce at least $100 million in taxes in a year – or Rs. 20 billion.
Mr. Ahmed was referring to a Chainalysis analysis that states Pakistani crypto dealers made $650 million in profits from July 2020 to June 2021, and that if taxed at just 15% (India levies crypto gains at 30%), the government could earn more than $100 million in taxes, or Rs. 20 billion. If you’re curious about the size of this sum, consider that Pakistan’s whole salaried class paid roughly Rs. 151 billion in taxes in 2020-21.
Not to mention that the $650 million in earnings made by Pakistani crypto dealers, or Rs. 20 billion in potential taxes per year, is a modest estimate given that trading is illegal in Pakistan and the Financial Investigation Agency (FIA) has been on the hunt for crypto traders recently.If allowed and legalised, profits (and, eventually, taxes) might be several times higher than what is indicated above.
Rain Financial Inc, which has crypto exchange licences in Bahrain and Turkey, wants to enter the Pakistani market as well, but unlike other exchanges, it will only do so if crypto trading is legalised in Pakistan.
The Rain team has reportedly met with a number of stakeholders, including the State Bank, SECP, Ministry of Finance, FBR, MoITT, and other bodies, for this purpose. According to Ms. Aatiqa Lateef, Rain Financial’s Director of Public Policy (Pakistan), the meetings were fruitful, and she expects positive things to happen around the legalisation of crypto trading in Pakistan.
In case you didn’t know, cryptocurrency trading is illegal in Pakistan. This implies you won’t be able to trade crypto assets on an exchange or even privately with another individual in the nation. While it is illegal to trade crypto on platforms like Binance (another crypto exchange), Pakistanis have been doing so on a regular basis, and if caught, the FIA might put the dealers behind prison.
FIA has reportedly lodged thousands of FIRs against individuals and detained a few sellers in the recent past. Rain Financial is leading the charge to correct this. It hopes to persuade Pakistan’s regulators to legalise cryptocurrency trading, and then enter the Pakistani market to offer its services.