IMF wants crypto taxes.
IMF suggests Pakistan expand Capital Gains Tax to cover cryptocurrencies, real estate, and securities. In talks for a $3 billion standby arrangement, IMF wants FBR to ensure taxation of all gains, not just on assets held for a certain time. They propose penalties for property developers who don’t report transfers before property completion. These measures aim to address challenges in taxing gains from real estate transfers before legal completion. IMF also recommends broadening the scope of capital gains taxation to include cryptocurrencies and ensuring all gains are taxed at appropriate rates, regardless of ownership duration. They suggest redefining “personal moveable property” to include all investment-capable assets, and eliminating provisions exempting gains after a specific holding period. These proposals may be included in the next budget for FY2024-25 through the finance bill. IMF aims to strengthen taxation on capital gains and ensure comprehensive taxation of various assets to improve revenue collection and address tax evasion practices in Pakistan.
