KARACHI: Pakistan needs to introduce laws to tax income from gains on cryptocurrency trading, Karachi Tax Bar Association (KTBA) said in its annual report on Tuesday.
“ … trading of real-estate in Pakistan is grossly under-taxed while inheritance, gift and crypto tax is yet to be explored over here,” the tax bar said in its annual report for the year 2021.
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According to the general secretary’s statement the year 2021 had been exceptional where service of Artificial Intelligence in the tax matters was given legal sanctity under section 175A and 175B of Income Tax Ordinance, 2001 and NADRA is mandated to compute ‘indicative income’ to identify tax evasions.
Similar provision has also been introduced in Sales Tax Act, 1990 under Section 56A and 56AB.
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On global score OECD was able to bring 136 countries to a minimum tax rate of 15 per cent w.e.f. year 2023 with use of digital payment for Multinational Entities (MNEs) to offset the abuse of transfer pricing/profit shifting.
”Pakistan needs to timely synchronize its banking and tax infrastructure to cater these challenges,” according to the report.
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It said that year 2021 had been an incredible year. By working with Federal Board of Revenue (FBR), Sindh Revenue Board (SRB) and other tax/regulatory authorities across the country, KTBA was able to extend its legacy of working towards the strengthening of rule of law in tax and corporate regimes.
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“Be it overstepping by the field formation in the domain of Section 11 of Sales Tax Act, 1990; abuse to amend the assessment under section 122 of Income Tax Ordinance, 2001, transgression of constitutional provisions by SRB or uninspiring assertions from Federal Tax Ombudsman (FTO), KTBA’s intensified actions had helped in easing the situations for this fraternity.”
