ISLAMABAD: The two-day 9th session of Pak-Afghan Joint Economic Commission (JEC) scheduled for February 23-24 in Kabul is expected to finalise modalities for signing Avoidance of Double Taxation and the Prevention of Fiscal Evasion Convention.
As per details, the JEC will discuss the issue of Avoidance of Double Taxation and the Prevention of Fiscal Evasion convention.
Pakistan, on its part, has been striving hard to ink the Avoidance of Double Taxation and the Prevention of Fiscal Evasion convention with Afghanistan as it has drafted a standard model of Avoidance of Double Taxation agreement. However, the response of Afghan authorities is awaited in this regard. Currently the Afghan tax authorities want to tax Pakistani national flag carrier in the absence of any convention between two countries.
However, if the convention is inked between the two, exemption may be available to airlines of both the countries. During the last meeting between Finance Minister Ishaq Dar and his Afghan counterpart Dr Hazrat Omer Zakhilwal, the former also took up the matter of avoidance of double taxation treaty between the two countries for encouraging private investment. Afghanistan and Pakistan mutually agreed to launch negotiations for avoidance of double taxation treaty.
The FBR has taken up the matter with the Foreign Affairs and Commerce Ministries to push the Afghan authorities for early commencement of negotiations to pave the way for signing the convention.
