Pakistan, OECD sign multilateral convention on tax matters

PARIS: Pakistan became a signatory to the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters after signing the convention.

Finance Minister Ishaq Dar and Secretary General of the Organization for Economic Cooperation and Development (OECD) Angel Gurria signed the convention in a dignified ceremony in Paris.

OECD invitation to Pakistan to sign the convention was made possible after a long process of over two years, which included peer reviews and amendments in Pakistani domestic income tax laws to meet the requirements of OECD.

It demonstrates Pakistan’s strong commitment to adopt international best practices in the field of tax matters and join the multilateral fight against tax evasion through mutual auto and spontaneous exchange of information.

The convention, which is currently signed by over 80 countries, would facilitate international cooperation on national tax laws and provide administrative cooperation among member countries to combat tax evasion.

The finance minister, according to a statement issued by the finance ministry, also held a bilateral meeting with the OECD secretary general to discuss ways and means to further strengthen the existing ties between Pakistan and OECD.

He conveyed Pakistan’s desire to become a key OECD partner country. Dar reaffirmed Pakistan’s determination to cooperate with OECD on all important areas of mutual interest.

He informed the OECD secretary general about various economic and fiscal reforms undertaken by the government to stabilise Pakistan’s economy and the increased budgetary support for health and education sectors.

Dar also invited the OECD secretary general to visit Pakistan. Gurria congratulated the finance minister on historic signing of the convention on mutual administrative assistance in tax matter and for his central role in economic turnaround in Pakistan in the last three years.

He acknowledged that Pakistan has made great strides in economic field, which has deservedly received accolades from international financial institutions. He invited Pakistan to take part in various OECD global for a and meetings.

OECD is an intergovernmental forum, which focuses on issues, including trade, taxation, environment, technology and education. The forum has 35 member countries in Europe, Americas and Asia-Pacific. Pakistan though not a member of OECD has been regularly invited to participate in its various committee meetings.