ISLAMABAD, April 8: The federal cabinet is likely to approve the revision of the convention on avoidance of double taxation on income between Pakistan and Japan for facilitating the trade.

An official source said that the decision was expected to be taken in the cabinet’s meeting scheduled for Wednesday. The decision of revising the treaty was taken following the demand of Pakistan-Japan Business Forum.

The official said that the process to negotiate the new model of taxation would be started soon with the Japanese tax officials following the cabinet’s approval.

The forum has asked for signing of the OECD model of taxation treaty between the two countries, said the official.

Pakistan and Japan had signed agreement on double taxation on February 7, 1959. It was revised in 1969 as protocol supplementing the convention between Pakistan and Japan for avoidance of double taxation and prevention of fiscal evasion in respect of taxes.