WASHINGTON: The United States said Friday that it had suspended tax exemption privileges enjoyed by Pakistani diplomats due to parallel disputes with Islamabad in the latest dust-up between the countries.
Under the 1961 Vienna Convention, diplomats around the world do not pay taxes in countries where they are posted, with embassy staffers in Washington routinely flashing State Department-issued exemption cards when dining out or shopping.
The State Department said it withdrew tax exemptions for Pakistani diplomats and their dependents as of May 15, citing pending tax issues faced by US diplomats in Pakistan.
“The issue is the subject of ongoing bilateral discussions, and we hope to be able to resolve the issue and restore the tax privileges,” a State Department spokesman said.
While the latest issue was not linked to politics, the United States last year restricted Pakistani diplomats in Washington from traveling outside a 25-mile (40-kilometer) radius around the US capital after charging that Pakistani police routinely harass US diplomats, including through time-consuming traffic stops.
The Pakistani embassy in Washington said that 22 officials enjoyed the tax exemption.
In a statement, it also said that discussions were underway “on the basis of the principle of reciprocity.”
Pakistan is a Cold War ally of the United States but the two countries have had bumpy relations in recent years, with President Donald Trump cutting off some $300 million in military aid, saying Islamabad had failed to curb Islamist extremists who stage attacks in Afghanistan and India.
Pakistan has tried to revive ties by using its contacts with the Taliban to facilitate negotiations with the Trump administration, which wants to withdraw troops from Afghanistan and end America’s longest war.
US pulls tax exemption from Pakistani diplomats
US pulls tax exemption from Pakistani diplomats
- Withdraws privileges citing pending tax issues faced by US diplomats in Pakistan
- Under Vienna Convention, diplomats do not pay taxes in countries where they are posted
Pakistan plans to cut Islamabad entry points to 25 in major security overhaul
- The development follows two suicide blasts in the capital as well as deadly protests over Iranian Supreme Leader Ali Khamenei’s killing
- Authorities earlier enforced an electronic tagging system in Islamabad to regulate traffic, improve record-keeping and enhance surveillance
ISLAMABAD: Authorities have decided to reduce the number of entry points in Islamabad to 25 as part of a major security overhaul of the Pakistani capital, the interior ministry said on Friday.
The development follows a suicide blast that last month killed at least 32 people and injured more than 100 others at a mosque in Islamabad. In November last year, a suicide bomber struck outside a court in the capital, killing 12 people.
The Islamabad Capital Territory (ICT) introduced an electronic tagging system late last year as part of a broader effort to regulate traffic, improve record-keeping and enhance surveillance in a city that hosts the country’s main government institutions, foreign missions and diplomatic enclaves.
On Friday, Interior Minister Mohsin Naqvi presided over a meeting to review law and order situation in the capital and directed officials formulate an effective strategy in this regard, according to his ministry.
“The number of entry points in Islamabad will be reduced from 109 to 25 gradually,” the ministry said, adding that officials were asked to make the Red Zone, which houses key government institutions and foreign missions, practically active.
The directives also come days after deadly protests against the killing of Iranian Supreme Leader Ali Khamenei in Islamabad, when several protesters were injured in clashes with police after they had barged into the Red Zone.
Naqvi ordered foolproof security in the city through strict monitoring at checkpoints and entry points.
“Law and order will have to be ensured in the federal capital at all costs,” he added.
Late last year, the Islamabad Capital Territory (ICT) administration also introduced an electronic tagging system as part of a effort to regulate traffic, improve record-keeping and enhance surveillance in Islamabad.
Under the system, vehicles are fitted with electronic tags that can be read automatically by scanners installed at checkpoints across the capital, allowing authorities to identify unregistered vehicles without manual inspections. Vehicles already equipped with a motorway tag, or m-tag, are exempt from the requirement.
