Afghanistan offers five-year tax exemption to Indian gold mining investors

Afghanistan’s Industry and Commerce Minister, Alhaj Nooruddin Azizi, announced on Monday that his government is prepared to offer five-year tax exemptions to companies investing in new sectors, including gold mining, as part of a push to attract foreign investment.

Speaking at an interactive session hosted by industry body Assocham, Azizi noted that ongoing tensions with Pakistan are creating barriers to trade, and said Afghanistan is looking to strengthen economic ties with India.

“There is huge potential in Afghanistan, and you won’t face much competition,” he told Indian businesses. “You will receive tariff support, and we can provide land. A five-year tax exemption will be available to companies willing to invest in new sectors.”

Azizi added that Indian firms will be charged only a 1% tariff on machinery imports meant for investment projects.

On gold mining, he said Afghanistan is seeking technically skilled and professional companies. “We request that you send your teams to conduct research and exploration. After that, they can begin operations. The only condition is that the processing should be done within Afghanistan so that jobs are created locally.”

The minister also urged India to address “minor” issues that are hampering trade, including visa processes, the air corridor, and banking channels. “These must be resolved to boost bilateral trade and investment,” he said, addressing Indian officials present at the event.

Azizi is currently on a five-day visit to India.