IMF requires Pakistan to impose crypto tax for $3b bailout

The IMF wants Pakistan to increase tax measures on crypto profits to secure a $3 billion bailout for its faltering economy.

The latest reports show Pakistan’s crypto industry is worth nearly $20 million. As of 2023, the country was ranked among the top five highest crypto investors worldwide, with 15 million of its population actively owning cryptocurrencies.

In negotiations over a $3 billion standby agreement with the IMF, the lender has advised Pakistan’s Federal Board of Revenue (FBR) to broaden Capital Gains Tax (CGT) coverage by including cryptocurrency transactions. The IMF also suggests reevaluating real estate and publicly traded securities tax brackets to ensure taxation on all profits, independent of ownership duration.

Under the proposed guidelines, real estate developers in Pakistan would have to record and declare every transfer of real estate interest before the finalization and official registration of property titles. Non-compliance with these regulations could lead to fines, including secondary liability for outstanding taxes. This initiative targets to regulate the common practice of trading plot files in housing projects.

After Pakistan accepts the terms, the IMF plans to release approximately $1.1 billion, the remaining portion of the bailout agreement from the previous summer. This agreement prevented Pakistan from defaulting on its sovereign debt.

Source link

About The Author

Scroll to Top