New sections in Finance bill FY17 will enable tax authorities to sign bilateral treaty with OCED

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New sections in Finance bill FY17 will enable tax authorities to sign bilateral treaty with OCED

ISLAMABAD, Jun 9 (APP): Minister for Finance Muhammad
Ishaq Dar said on Thursday that new sections in Finance bill
(2016 17) will enable the tax authorities to sign bilateral
treaty level with Organization for Economic Co operation and
Development (OCED) forum.

On demand of OCED forum through Finance Bill 2016 17,
“We seek to substitute sub section (1) of Section 107 to provide for more instruments and arrangements of international taxation and avoidance of double taxation agreements and to make technical corrections,” the minister said in the National Assembly Committee of Finance here in Parliament house.

The committee meeting was chaired by MNA, Qaiser Ahmed
Sheikh in which Budget 2016 17 and issues of tax duties on different sector came under discussion.

Ishaq Dar said that the government is fully committed for
transparency and control the tax evasion in the country, adding that the government was negotiating with OCED forum to get membership and the process to be followed in this regard.

He said that after following the proper process and
mechanism for membership of OCED and General Secretary of the forum to formally invite the Pakistan for the member of OCED.

Pakistan will also get the membership of Global Transparency
and Exchange of Information convention in the umbrella of OCED forum, which would be strong and spontaneous to be operationalized in 2017.

Dairy and Food Association, Rice Export Association and
All Pakistan Cement Manufacturing Association representatives
briefed the committee regarding the new tax duties in Budget 2016 17 in these sectors and demanded for zero tax rated tax for these sectors.

Representatives of all these sectors highlighted the role of the
sectors for economic growth and their contribution in GDP growth.
On the occasion, Chairman Federal Board of Revenue, Nisar Muhammad
Khan rejected that any direct tax on these sector, adding tax increased
only on inputs related to these sectors.

MNA Jhangir Khan Tareen, Saeed Ahmed Khan, Muhammad Pervaiz Malik, Sheikh Fayyaz ud Din, Ms. Leila Khan and officials of FBE participated in meeting.