29 January 2004	Thursday	06 Zilhaj 1424

ISLAMABAD, Jan 28: Pakistan has proposed to evolve a framework for cooperation among the tax authorities of the ECO- member countries aimed at facilitating their respective businessmen.

Official sources told Dawn on Wednesday that the proposal would be taken up for consideration in the meeting of ECO ministers of finance and economy beginning from Jan 29-30.

According to the officials, the framework would focus on entering into avoidance of double taxation treaties among the member countries. It would also focus on developing a framework for sharing information on tax practices among the member countries, the officials said.

To develop a framework for sharing information, the officials said it was proposed that a representative of experts committee might be constituted that would identify the areas and modalities in this regard.

A forum of the OIC was already working for the mechanism for integration of the system of OIC countries. The ECO-member countries might extend cooperation within the member countries in drafting of taxation laws and providing training to tax officials.

According to the officials, through an academic exercise a mechanism would come into being, which would lead to uniformity and integration of tax systems of the ECO-member countries.

Pakistan has so far entered into double taxation treaty with Kazakhstan, Turkey, Uzbekistan, Turkmenistan. The agreements with these countries were functioning smoothly to the satisfaction of signatory countries and did not need any change, the officials added.

According to the officials, Pakistan has signed an agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income with Iran on May 27, 1999. The agreement was awaiting the ratification by the Iranian authorities.

The draft agreement on double taxation with respect to taxes on income between Pakistan and Turkmenistan was initialled on April 29, 2003. It will be signed by the representatives of both the countries soon.

Similarly, the officials said the cabinet has authorized the tax authorities to start negotiations with Tajikistan for the conclusion of an agreement on double taxation.