IMF wants to add cryptocurrency and real estate to tax net
The International Monetary Fund (IMF) has also asked Pakistan to expand the scope of capital gains tax, bring cryptocurrencies into the tax net and review the slabs of listed securities.
It has also been urged to review the slabs of listed securities to ensure that all profits are taxed instead of holding assets for any period.
Apart from this, IMF has asked the FBR to make property developers, builders a part of the tax net and make it binding.
The requirement is to make it mandatory to track and report transfers.
If a property developer fails to do so, fines can be imposed on him.
The IMF’s technical assistance report said the Pakistani authorities faced challenges in assessing and collecting tax on capital gains arising from the disposal of interests in real estate or on the sale of property.
As this is normal practice real estate are generally not registered until legal completion of the property, any transfer of real estate profits from the initial buyer to the next before legal completion of the property, or any transfer of real estate thereafter, must be formally recorded.
The introduction and application of the system was insisted by the IMF. The IMF has also suggested measures to strengthen the taxation of capital gains.
