IMF Proposes Electricity Tax to Reduce Environmental Impact of Crypto, AI Industries

It was previously reported that in an effort to stabilize Pakistan’s struggling economy and obtain a crucial loan package of USD 3 billion or equivalent to IDR 47.2 trillion (assuming an exchange rate of IDR 15,735 per US dollar) from the International Monetary Fund (IMF), the country was urged to implement stricter tax measures.

As reported by Coinmarketcap, Tuesday (19/3/2024), one of them is tax on capital gains from cryptocurrency investments and real estate transactions.

During the ongoing review talks between the IMF and Pakistani authorities on the USD 3 billion standby arrangement (SBA), the global lender has recommended that the Federal Board of Revenue (FBR) expand the scope of Capital Gains Tax (CGT) by including cryptocurrencies in the tax net.

The IMF also called for a review of taxes on real estate and securities to ensure 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 interests in real property prior to settlement and registration of property title.

Failure to comply with the new regulation could result in fines, including secondary liability for unpaid taxes. The move aims to bring the practice of buying and selling various land parcels in a housing scheme into the tax net.

If Pakistan agrees to the terms, the IMF is expected to release about $1.1 billion or Rp17.3 trillion as the final tranche of the rescue package Pakistan secured last summer, which helped the country avoid a sovereign debt default.