IMF Recommends Pakistan Tax Cryptocurrency Gains - Report

IMF Recommends Pakistan Tax Cryptocurrency Gains - Report

The International Monetary Fund (IMF) is reportedly recommending that Pakistan's Federal Board of Revenue (FBR) expand the scope of its capital gains tax to include cryptocurrencies. According to media reports, the IMF is asking the FBR to include cryptocurrency profits in the country’s tax liability.

The IMF recommends that the FBR raise capital gains tax to help with $3 billion in relief fund funds. In addition to this, the IMF has recommended that the FBR should also look into taxation of real estate and securities.

The IMF has already provided Pakistan with $3 billion to stabilize the country's highly inflation-prone economy. The economy was at risk of a debt crisis due to geopolitical tensions, natural disasters and unstable governance. The IMF's review of Pakistan began on March 14 and if terms are agreed, around $1.1 billion will be disbursed to Pakistan in aid.

Pakistan's Finance and Revenue Minister of State Aisha Ghaus Pasha announced almost a year ago that Pakistan would never legalize cryptocurrency trading. However, now the government has proposed taxing cryptocurrency profits.

Late last year, Coinbase mentioned that Pakistan was on a growing list of countries whose authorities have requested information from the cryptocurrency exchange.

In connection with this development, it might be interesting to provide some historical facts regarding the taxation of cryptocurrencies in other countries. Here is a table showing some examples:

It remains to be seen how the IMF’s recommendations will impact the cryptocurrency industry in Pakistan. This is expected to lead to increasing tax requirements for cryptocurrency investors.