Pakistan Faces IMF Pressure to Tax Crypto and Real Estate

cryptonews.com:

According to a local news outlet, the International Monetary Fund (IMF) has stipulated that Pakistan’s Federal Board of Revenue (FBR) must levy a capital gains tax (CGT) on crypto investments and real estate as part of the conditions for receiving a $3 billion bailout package.

Additionally, the IMF has advised Pakistan to reevaluate the taxation of real estate and listed securities.

During discussions regarding a $3 billion stand-by arrangement (SBA), the IMF recommended that the FBR impose taxes on crypto capital gains and review the taxation structure for real estate and listed securities. The aim is to ensure that all profits are taxed without any exceptions based on the duration of asset ownership.

Furthermore, the IMF has proposed that property developers monitor and report all transfers before the completion and registration of property titles. Failure to comply with these regulations could result in penalties. This move is intended to bring the buying and selling of property files in housing schemes under the tax net.

These recommendations are likely to be included in the upcoming bailout package under the Extended Fund Facility (EFF). The FBR may be obligated to incorporate these measures into the next budget for the fiscal year 2024-2025 through the finance bill. Consequently, Pakistan could officially introduce a stringent tax on crypto capital gains in its budget for the specified fiscal year.

The $3 billion IMF aid is intended to stabilize Pakistan’s hyperinflated fiat economy and prevent a debt default. Various factors, such as geopolitical tensions, natural disasters, and unstable governance, have contributed to Pakistan’s economic challenges. The IMF review, which began on March 14 and is expected to last four