ISLAMABAD – The federal government is considering imposing a capital gains tax on profits earned from cryptocurrency transactions and trading in the upcoming budget, according to sources.
Reports suggested that profits from crypto trading may be taxed at a rate ranging between 15 percent and 30%.
The move comes after consultations with the International Monetary Fund (IMF), which has urged Pakistan to bring digital businesses and virtual assets into the formal tax system.
In this regard, authorities are considering introducing a new provision related to capital gains from crypto transactions in Section 37 of the Income Tax Ordinance.
Officials are also working on regulatory and monitoring frameworks for crypto users and transactions to ensure effective tax collection.
A special committee, formed to propose mechanisms for taxation and oversight of virtual assets, has reportedly finalized its recommendations.
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