FTO takes notice of FBR’s failure to make policy on cryptocurrency

ISLAMABAD: The Federal Tax Ombudsman (FTO) has taken strict notice of FBR’s failure to formulate a tax policy on crypto currency. It regretted the loss to national treasury by not formulating a clear tax policy related to digital transactions.

The FBR, instead of formulating a tax policy on cryptocurrency, has challenged the discretion of FTO on this matter. According to sources, the FBR ignored FTO’s instructions, saying this matter does not fall within the purview of Tax Ombudsman.

Rejecting the objection, FTO condemned the failure of FBR to formulate a clear tax policy on cryptocurrency. It directed FBR to take immediate steps to bring digital transaction tax into the system.

A complainant had filed a complaint with FTO, saying he is a user of local cryptocurrency. “There are more than 9 million users of crypto currency in Pakistan”, the complainant said, adding “Pakistan is the sixth largest country in the world in terms of using crypto currency”. Despite that, this sector is completely undocumented and untaxed, he said.

The complainant said he wants to pay tax and repeatedly insisted on FBR to formulate a tax framework related to digital assets and cryptocurrency business.

The FTO directed FBR to take all stakeholders on board and formulate a comprehensive policy on cryptocurrency and address the issue in the Finance Bill. It asked Member Tax Policy IR to investigate non-attendance of Policy Wing officers in the hearing and take strict action against the responsible.