The International Monetary Fund (IMF) has proposed to the Federal Board of Revenue (FBR) to expand the scope of Capital Gains Tax (CGT), bringing cryptocurrencies into the tax net.
International lender have also asked the FBR to widen the scope of capital gains tax for real estate, it has asked to review the slab of real estate as well as listed securities.
Through this recommendation, the IMF has asked the FBR to bring the growing business of buying and selling of various plot files in housing schemes into the tax net. These IMF recommendations may form part of the bailout package under the Extended Fund Facility. And the FBR may commit to making it part of the next budget for 2024-25 through the Finance Bill.
According to the technical assistance report, Pakistani authorities confront difficulties in calculating and collecting tax on capital gains from real estate disposals or interests in real estate sales. Property interests are often not recorded, hence no transfer of property interest from one buyer to another before formal completion of the property, nor any subsequent transfer of real estate, is now registered.
READ MORE:Â Final round of the ongoing talks between IMF and Pakistan takes place today
The development came during review meetings between the IMF and Pakistani officials on the $3 billion stand-by agreement (SBA).
The four-day review began on Thursday and, if successful, will release a last tranche of approximately $1.1 billion secured by Islamabad under a last-ditch rescue deal last summer, preventing a sovereign debt default.
During the negotiations, the Washington-based lender also requested that slabs of real estate and listed securities be reviewed to guarantee that all gains are taxed, rather than hoarding assets.
Moreover, today is the last session of negotiations between the country’s financial team and the IMF (International Monetary Fund) mission. Negotiations with the provinces and asset declaration by public employees are among the topics on Monday’s agenda, according to sources.
But they would also talk about things like wages and pensions, financing for the climate, monetary policy, and the next budget.
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