ISLAMABAD: Pakistan and Afghanistan have concluded the first round of negotiations on Avoidance of Double Taxation Prevention of Fiscal Evasion with slight progress and development as both sides could agree to continue with discussions as well as to take up the rest of issues in the second round of negotiations in future.
Member Strategic Planning, Reforms and Statistics Dr Muhammad Iqbal told Customs Today that both the countries had a unanimous view that double taxation was hurting the bilateral trade activities as well as making the each other’s markets noncompetitive for either side’s traders.
He further said that both the delegations agreed to make efforts to facilitate traders. “However, signature on a Double Taxation Avoidance Treaty is a long journey to go ,” he observed.
Explaining the future course of talks, he said that delegations would present their findings with the respective ministries and the ministries would move a package of recommendations and proposals to each other through ministries of foreign affairs.
“With active participation of foreign affairs’ ministries in terms of extensive correspondence, both sides will agree on a final date for second round of negotiations on the said matter” he added.
“Rounds after rounds of talks will be held for developing consensus between both the countries on an agreed draft of agreement and then the agreement will be signed” he concluded.
It is pertinent to note here that the first round of negotiations between Pakistan and Afghanistan on the convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on oncome was concluded here recentl.
The Pakistan delegation was headed by Mohammad Iqbal, Chief (International Taxes) and included Malik Amjed Zubair Tiwana (SA to Chairman, FBR), Sajida Kausar, Secretary (TT&C), and Khalid Jameel, Secretary (SPR&S).
The Afghan delegation was headed by Mujeeb ur Rahman Shirzad, Director General of Revenue and included Abdul Wali Noori, Legal Services and Policy Director and Nekmatullah Khostwal, Director International Tax Policy, Afghanistan Revenue Department.
The inaugural session was presided over by Rehmatullah Khan Wazir, Member (Inland Revenue Policy) who welcomed the delegates from Afghanistan and hoped that the proposed tax treaty between the two brotherly countries shall foster economic relationships and contribute to the development of both the countries.
The negotiations were conducted in a shared spirit of friendship and mutual understanding and the two delegations reached agreement on most of the provisions of the convention.
The remaining issues shall be discussed in the second round of negotiations. At the end of three days negotiations, the agreed text was initialed by the heads of the two delegations.
