IEA announces 50% tax cut across four tax categories

The Islamic Emirate of Afghanistan (IEA) has announced a 50 percent reduction in taxes for eligible taxpayers under a decree issued by the Supreme Leader, with the measure applying to four categories of taxes.

Speaking at a conference in Kabul on Sunday, Administrative Deputy Prime Minister Abdul Salam Hanafi said the reduction is intended to ease the burden on taxpayers. He also instructed tax collection officials to treat taxpayers in accordance with Islamic principles and uphold appropriate conduct throughout the tax collection process.

Hanafi said the tax reduction applies to legal entities, natural persons, property transfers and petroleum products, with taxes in these categories reduced by 50 percent.

Meanwhile, Finance Minister Mohammad Naser Akhund said the government would address the concerns and challenges facing taxpayers. He stressed that tax revenues would be used to support the country’s economic development and finance public programmes.

At the same event, Minister of Commerce and Industry Nooruddin Azizi said the objective of the tax reduction is to strengthen the national economy. He urged taxpayers to conduct their economic activities transparently and added that, following the suspension of trade with Pakistan, licenses had been issued to 100 pharmaceutical and medical equipment manufacturing companies.

Officials from the Afghanistan Chamber of Commerce and Investment (ACCI) also said the tax reduction would ease the financial burden on economic actors and create conditions for increased investment. The chamber’s head, Sayed Karim Hashemi, said the measure would not only support investors but also contribute to the country’s economic growth and recovery.

During the meeting, officials of the Islamic Emirate also announced that new investors will be exempt from paying taxes for five years. They added that Afghanistan has now achieved self-sufficiency in the production of 300 different goods.