US Withdraws Tax Exempt Status Of Pakistani Diplomats Citing Tax Issues Of American Diplomats In Pakistan

The US State Department has withdrawn tax exemptions from Pakistani diplomats as part of a wider dispute emanating from tax problems which US diplomatic staff in Pakistan have to face, reports The Economic Times.

The privilege for diplomats of not having to pay taxes in the countries where they are sent to work stems from the provisions of the 1961 Vienna Convention.

"The issue is the subject of ongoing bilateral discussions, and we hope to be able to resolve the issue and restore the tax privileges," said a spokesperson of the State Department.

The US had taken a similar retaliatory measure against Pakistani diplomats last year by restricting their movement to within a 25-mile radius of Washington; the American side alleged that their diplomats were routinely harassed by Pakistani traffic police.

The administration of President Donald Trump is widely seen to have taken a tough approach to dealing with Pakistan, especially compared to previous American leaders. Trump has already terminated around $300 million in military aid to the country for not doing enough to fight against Islamic terrorists.