Investors and traders welcome new tax reduction plan 

Businessmen and investors have welcomed the Islamic Emirate’s new tax reduction plan and said they support the initiative. 

At a meeting in Kabul on Sunday, members of the private sector said that creating facilities and reducing taxes can benefit businesses and help boost economic growth in the country.

“In the past year, there has been considerable progress in the trade and transit sector. Last year, we had approximately 2,200 trade shipments,” said Mohammad Yunus Mohmand, acting head of Chamber of Commerce and Investment (ACCI).

According to the new tax reduction plan, for the growth and support of the private sector, tax on company profit has been dropped from 4% to 2%, while the 7% contract tax on agriculture, industry and commerce has been waived. 

Educational centers have meanwhile been exempt for one year from paying profit tax. 

Khanjan Alkozi, a member of the ACCI meanwhile said that in light of investors and factory owners now being supported, the chamber calls on them to ensure they produce quality goods that are sold at affordable prices. 

Some traders said they are still facing numerous challenges but hope the new tax plan will ease their problems. 

“The thing I would like to mention is the two percent tax that they (Islamic Emirate) say exporters must pay at the customs, but our request to the Islamic Emirate is that if this tax is reduced from two to 0.5 percent, it will be very good,” said one trader. 

Based on this new plan, passport distribution and visa issuance facilities are supposed to be created for businessmen and industrialists in all zones of the country.