US withdraws special tax exemption to Pakistani diplomats

The United States has withdrawn its special tax exemption to Pakistani diplomats. This move comes over a year after the Trump administration imposed travel restrictions on them.

The Diplomatic Tax Exemption programme is usually granted to foreign diplomats and consulars. It provides sales and use, food, utility and other tax exemptions to eligible foreign officials on assignment in the US. Tax exemption privileges are generally based on two international treaties: The Vienna Convention on



Diplomatic Relations and the Vienna Convention on Consular Relations. All such services and privileges are based on the principle of reciprocity.

Last year, the US had placed "reciprocal restrictions" on the movement of Pakistani diplomats in the country from May 1, forcing them to stay within 40 kms of the city they are posted in.

The US' move came after Pakistan imposed restrictions on American diplomats in the country and barred them from visiting the tribal belt and Karachi.