Bangladesh, Sept. 22 -- A slew of weaknesses detected by the European Union in implementation of the deal on avoidance of double taxation of incomes stand as deterrents to striking a bilateral trade agreement with Bangladesh, sources say.

Advertisement The EU has raised issues that include excessive deduction of withholding taxes, denial by tax officials of credits for taxes paid in other countries, and delays in approving Double Taxation Avoidance Agreement (DTAA) applications.

However, tax officials have said the decades-old DTAAs lack clarity, while many new services of foreign companies are not covered by them to allow the tax privileges.

Currently, Bangladesh has DTAAs with 42 countries, of which 10 are EU member-states.

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