Islamabad: Pakistan and Afghanistan will hold talks in March on a treaty to avoid double taxation and prevent fiscal evasion, an official said.
A draft agreement on avoidance of double taxation and prevention of fiscal evasion convention was handed to Afghan authorities in the Joint Economic Commission (JEC) meeting held in February 2014.
The treaty was drafted by Pakistani tax officials, Dawn online quoted official as saying on Friday. Pakistan “We had shared the draft with the Afghan government for a feedback and are currently awaiting response,” the tax official said.
In a recent meeting of Pakistan-Afghanistan JEC in Islamabad, the Afghan authorities said Kabul has already sent their feedback through diplomatic channel. However, the tax official said the Federal Board of Revenue (FBR) did not receive any feedback.
To resolve the issue, Afghan authorities handed a copy to Pakistani officials in a recent meeting. In the absence of any treaty on avoidance of double taxation between the two countries, Kabul has decided to tax Pakistan International Airlines.