ISLAMABAD: Pakistan will sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters with the Organization of Economic Cooperation and Development (OECD) on September 14 as the Federal Cabinet formally approved it on Wednesday.
Minister for Finance Ishaq Dar termed the decision a historic one while briefing a crowded press conference regarding decisions of the Federal Cabinet here at the Prime Minister’s Office. Minister for Information and Broadcasting Senator Pervaiz Rashid and Secretary Ministry of Information Saba Mohsin Raza were present on the occasion.
Dar said he would leave for Paris on September 13 to sign the agreement with OECD which has the representation of 100 countries. “The OECD has invited Pakistan to become its member as we fulfil its requirements,” said Dar.
“We will sign the agreement on September 14 as Federal Cabinet has accorded its approval,” he added. He said the agreement would be implemented by the end of 2017 and would be fully activated from 2018-19. He said after signing the treaty, Pakistan would have access to valuable tax data.
In addition to the treaty, the Cabinet also approved the signing of avoidance of double taxation treaty with Switzerland. The process was initiated in 2014 and a two-member Pakistani delegation held successful negotiations with Swiss authorities on June 25-27, 2016, he added. According to the Swiss law, this agreement would be approved by their parliaments and then it would be signed between the two countries, he said.