In a bid to stabilize Pakistan’s struggling economy and secure a crucial $3 billion bailout package from the International Monetary Fund (IMF), the country is being urged to impose stricter taxation measures on capital gains from cryptocurrency investments and real estate transactions.
During the ongoing review talks between the IMF and Pakistani authorities regarding the $3 billion stand-by arrangement (SBA), the global lender has recommended that the Federal Board of Revenue (FBR) expand the scope of Capital Gains Tax (CGT) by bringing cryptocurrencies into the tax net. The IMF has also called for a review of tax slabs on real estate and listed securities to ensure that all gains are taxed, regardless of the holding period.
As part of the proposed measures, property developers in Pakistan may be required to track and report all transfers of interest in real properties prior to the completion and registration of property titles. Failure to comply with these new regulations could result in penalties, including secondary liability for any unpaid taxes. This move aims to bring the widespread practice of buying and selling files of various plots in housing schemes under the tax net.
If Pakistan agrees to these conditions, the IMF is expected to disburse around $1.1 billion as the final tranche of the rescue package secured by Islamabad last summer, which helped the country avert a sovereign debt default.