IMF requires Pakistan to tax crypto gains for a $3B bailout. During the review talks surrounding a $3-billion stand-by arrangement (SBA), the IMF recommended that Pakistan’s Federal Board of Revenue (FBR) levy taxes on crypto capital gains.
Furthermore, the country has been instructed to review the taxation of real estate and listed securities, according to The News. The adjustment in tax rates, as proposed by the IMF, aims to collect yearly taxes on capital gains from real estate assets, regardless of whether the owner chooses to sell or retain the property.
Property developers could also face stricter tracking and reporting requirements, supported by hefty fines for non-compliance, ultimately enforcing new tax rules in the real estate market.
Local reports suggest that the IMF’s recommendations could become part of the upcoming bailout package under the Extended Fund Facility (EFF). As a result, Pakistan’s 2024–2025 budget might enforce a strict tax on crypto profits.
The four-day IMF review, which began on March 14, could result in the disbursement of around $1.1 billion if Pakistan agrees to the conditions.
As part of its efforts to support these initiatives, Pakistan intends to establish a National AI Fund by utilizing the “underutilized resources and funds” of the Ministry of IT and Telecom.
The IMF’s demand for crypto taxation aligns with international efforts to regulate and tax cryptocurrency investments, reflecting the growing significance of the digital asset space in global financial markets.
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