Pakistan Prepares Crypto Tax Framework; 9 Million Users May Enter Tax Net
According to sources, a 10% to 30% Capital Gains Tax may be introduced on profits generated from cryptocurrency trading activities.
Reports suggest that the proposal is being considered following consultations with the International Monetary Fund (IMF) regarding taxation in the digital sector.
Sources stated that the IMF has recommended imposing taxes on gains earned from all digital businesses and has also proposed implementing a tax mechanism for cryptocurrency transactions.
According to estimates, nearly 9 million people in Pakistan currently use cryptocurrency, and the government expects to generate billions of rupees in additional revenue by bringing crypto transactions into the formal tax system.
Profits from cryptocurrency trading could soon come under official taxation policies as authorities move towards regulating the sector.
Sources further revealed that the Pakistan Virtual Asset Regulatory Authority had been instructed to recommend tax measures for crypto users. In addition, a committee was established to review the number of crypto users, transaction volumes, and the potential taxation mechanism.