Preparations are underway to regulate and tax Pakistan’s growing cryptocurrency market, with authorities considering a significant capital gains tax on crypto trading in the upcoming budget.
The move comes as part of discussions with the International Monetary Fund (IMF).
According to official sources, a proposal has been made to impose a capital gains tax ranging between 15 to 30 percent on cryptocurrency transactions in the next fiscal year’s budget.
The measure aims to bring digital asset trading under the formal tax framework.
Sources in the finance ministry say the decision is being shaped in consultation with the IMF, which has reportedly demanded taxation on profits generated from all digital businesses.
Officials indicate that crypto profits will soon be included within the tax net as part of broader fiscal reforms.
Legal and regulatory changes proposed
Under the proposed framework, a capital gains clause related to crypto transactions is expected to be added to Section 37 of the Income Tax Ordinance.
This would formally categorize profits from crypto trading as taxable income.
The Virtual Asset Regulatory Authority has proposed a series of tax measures targeting crypto users.
A committee has also been formed to assess the number of crypto users, transaction volumes, and potential taxation mechanisms.
Move toward digital currency system
Officials say it has been decided to move forward with introducing digital currency by declaring virtual assets legal in the country.
This shift would allow regulated use of cryptocurrencies within a legal framework.
Under the proposed system, Pakistani rupees could be converted into digital currency for the purchase of virtual assets.
This would formally integrate crypto transactions into the financial system.
Authorities say profits earned through cryptocurrency trading are likely to come under the tax net soon.
The proposed framework is expected to formalize reporting and taxation of digital gains while aligning with international financial requirements.
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