IMF Advices Pakistan to Tax Crypto Gains
18 Mar, 2024 ● Crypto News
The International Monetary Fund (IMF) has directed Pakistan's Federal Board of Revenue (FBR) to implement Capital Gains Tax (CGT) on cryptocurrency investments as a prerequisite for receiving $3 billion in financial assistance.
In discussions concerning a $3-billion stand-by arrangement (SBA), the IMF advised that the FBR levy taxes on gains from cryptocurrency.
Additionally, Pakistan has been prompted to reassess the taxation approach for real estate and publicly traded securities, as reported by The News, a local news source.
The IMF's recommendations include annual capital gains tax collection on real estate, regardless of whether the property is sold or held.
This initiative is part of efforts to enforce stricter tax regulations in the real estate sector, complemented by severe penalties for those who fail to comply with new reporting obligations.
It's reported that these IMF suggestions might be incorporated into the forthcoming financial aid package under the Extended Fund Facility (EFF), indicating that Pakistan's 2024–2025 fiscal year budget may introduce rigorous taxation on crypto investment gains.
The provision of $3 billion by the IMF is intended to prevent a debt crisis in Pakistan, which faces economic challenges exacerbated by geopolitical unrest, natural disasters, and inconsistent governance.
The IMF review, which commenced on March 14, could result in the release of approximately $1.1 billion should Pakistan agree to these stipulations.
This development follows a statement from Aisha Ghaus Pasha, the minister of state for finance and revenue, nearly a year prior, asserting that the country would not legalize cryptocurrency trading.
In a push towards technological advancement, Pakistan aims to train 1 million IT graduates in artificial intelligence (AI) by 2027.
This initiative is part of a broader strategy to utilize AI for the public and national good, setting 15 objectives to be achieved between 2023 and 2028.
To fund these ambitions, Pakistan plans to create a National AI Fund, drawing upon the "underutilized resources and funds" of the Ministry of IT and Telecom.
Sources:
https://cointelegraph.com/news/imf-pakistan-tax-crypto-capital-gains
https://twitter.com/Crypto_Pakistan/status/1658884612771151885
