WASHINGTON – The United States has ended its diplomatic tax exemptionprogramme for Pakistani officials who work at the Embassy in Washington,reports in media said on Friday.
Tax exemption privileges for foreign diplomats are generally given based onpast international treaties, but the US State Department said thoseprivileges depend on reciprocity with other countries.
The program gives tax breaks for things like sales, hotel, food, airlines,gasoline and utility to eligible foreign diplomats designated to work inthe United States. The said facility is enjoyed by officials’ dependentstoo, reports The News International.
The decision to withdraw special Tax Exemption cards issued to Pakistaniofficials was made on May 15, after which the effected staffers had tosurrender the privilege.
The State Department said it hopes to resolve issues so the tax privilegescan be restored. It made the decision earlier this month, which affectsabout 20 employees in the Pakistani Embassy.
“There are thus ongoing discussions between Pakistan and the U.S. on thestatus of exemption/refunds on the basis of the principle of reciprocity,which should not be construed as withdrawal of any privileges,” thePakistani embassy said in a statement.
The move comes after the US last year barred diplomats working at thePakistani Embassy in Washington from travelling outside 250-mile radiusaround the city without approval.
Trump accused the country last year of “lies and deceit” in giving safehaven to terrorists, and threatened to cut aid.