ISLAMABAD, Oct 20: Thirteen Islamic countries, including Pakistan, have agreed to consider a proposal for allowing adjustment of Zakat payment against taxes in Islamic countries where both Zakat and taxes are collected.

Religious Affairs Secretary Vakil Ahmed Khan, along with Member of Direct Taxes Salman Nabi, who represented Pakistan at a recent meeting on improvement of tax, Zakat policies and administrations within the Organization of Islamic Countries (OIC) member states, said that the proposal would help to increase the payment of Zakat. The meeting was held in Malaysia.

Talking to Dawn on Wednesday, Mr Khan said that the Association of Tax Authorities of Islamic Countries (ATAIC), established last year, asked the member countries for early submission of proposals on the issue to be discussed with other member countries.

The ATAIC was established with the objective of improving the tax and Zakat policies and administration in all their aspects within Organization of Islamic Countries member countries.

The secretary said that government had already constituted a task force headed by Minister for Religious Affairs Ijaz-ul-Haq with four provincial ministers as members of the committee. The representatives of the private sector would also be inducted in the committee.

He said that the task force had been asked to revisit the Zakat and Usher Ordinance 1980 and improve shortcomings in it. The committee would also update the law regarding the collection of Zakat.

Mr Khan said that two new countries, Sudan and Iran, also joined the ATAIC during recent meeting. It was hoped that Turkey would also join the group soon.

The Association of Tax Authorities of Islamic Countries has also proposed to send invitation to all Organization of Islamic Countries member countries for joining the taxation group.

Elaborating the activities of the association, he said it would hold meetings, including an annual technical meeting relating to tax/zakat issues, for exchange of ideas and experiences; organizing seminars, workshops and training courses on aspects of tax/zakat organization; collecting, analysing and disseminating information on tax/zakat issues.

Mr Salman Nabi, who represented Pakistan in the meeting on the taxation issues, told Dawn that Pakistan would enjoy the privilege of being one of the founding members of the association.

As the founding member Pakistan was quite instrumental in the formulation of the guiding principles, which would determine the structure and the working of the organization in the years to come.

He gave detailed presentation to Association of Tax Authorities of Islamic Countries on the voluntary compliance, taxpayers facilitation measures taken in Pakistan.

Mr Nabi said all the delegates were greatly impressed by the tax system of Pakistan and showed keen interest in sharing Pakistan's experience of tax administration and reforms.