U.S withdraws privilege: diplomats no more tax exempted

A year after the Trump administration imposed travel restrictions on Pakistani officials stationed here at the embassy, the State Department has now withdrawn its Diplomatic Tax Exemption program usually granted to foreign diplomats and consular.

The program provides sales and use, occupancy, food, airline, gas, and utility tax exemptions to eligible foreign officials on assignment in the United States. They said facility is enjoyed by officials’ dependents too. The decision to take back special Tax Exemption cards issued to Pakistani officials was made on May 15, after which the affected staffers had to surrender the privilege. The number of affected staffers of the Pakistani Embassy is a little over twenty.

Since all such services and privileges are based on the principle of reciprocity, that means no privileges are granted to a foreign official unless the United States Embassy and Consular personnel receive the equivalent privileges in that country.