Delay in taxation treaty hurts trade with Australia

Agreement for avoiding dual taxation has been pending for 17 years

ISLAMABAD: Bilateral trade and investment ties between Pakistan and Australia have been severely affected due to a prolonged 17-year delay in signing an agreement to do away with dual taxation.

Pakistan's high commissioner in Australia has written a letter to the foreign ministry, demanding finalisation of the agreement. As per the letter, the agreement has remained pending for the past 17 years due to which trade and investment between the two countries has been seriously impacted.

The letter stated that the Pakistan High Commission in Australia had raised the issue with the foreign affairs and trade departments several times while the matter was also discussed in a recent meeting of the Pakistan-Australia Joint Working Group.

On March 20 this year, the high commissioner met several key figures of Australia's Treasury Department including Corporate Division head Paul McCullough, Cross Border Transaction Unit Manager Lynn Kelly and Corporate and International Tax Division Chief Adviser Ronita Ram.

It is expected that the agreement to do away with dual taxation will facilitate potential investors and boost bilateral trade and investment. In addition to these, the agreement will also help counter financial crimes and money laundering.



The letter also mentioned the significance of Special Economic Zones near the route of China-Pakistan Economic Corridor (CPEC) and their business potential, including opportunities for global mining and renewable energy industries in which Australian investors may be interested.

In the meeting of the high commission with treasury officials in Australia, Paul McCullough said the Treasury Department was negotiating with several countries on dual-taxation contracts under its five-year plan and expressed hope that Pakistan would also benefit from the opportunity.

Published in The Express Tribune, April 20^th, 2019.

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