ISLAMABAD, May 14: The successful implementation of the convention for the avoidance of double taxation and prevention of fiscal evasion would increase the volume of trade between Pakistan and Tajikistan.

Central Board of Revenue (CBR) official spokesman and member direct taxes, Vakil Ahmed Khan told reporter here on Friday that the agreement had emphasized the concept of taxation on income of international business transactions in the home country of the recipient.

He said it clearly defined the tax rules that would apply in case of cross-border business transactions. According to the spokesman, the agreement would be implemented following the ratification by the Tajikistan government.

Mr Khan said the agreement would open new avenues for business and economic cooperation with the central Asian countries.

Although Pakistan's trade with Tajikistan at present was not much, considerable potential for its expansion and reciprocal investment existed. The agreement would be an important step towards strengthening bilateral economic relations between the two countries, he said.