The Ministry of Finance has sent an amended draft of income tax law to the Wolesi Jirga, the Lower House of Parliament, for approval, which includes three-year tax exemption for manufacturers, reducing tax penalties and simplifying the process of tax collection, a spokesman for Finance Ministry Shamroz Khan Masjidi said.
The first income tax law was published in the national gazette in 2008 in 78 articles. A number of amendments were suggested in the law in 2015. This time, more amendments have been brought to the law and it has been sent to the parliament for approval.
“Some amendments have been recommended in the income tax law. The main part is about the tax exemption for the first three years for new industries and also two percent contractual tax. Approval of these amendments await approval of the national assembly,” Masjidi said.
Officials of Afghanistan Chamber of Industries and Mines said the government’s promises to bring ease in the investment and providing incentives in taxation have remained on paper.
“I think it will remain just a promise. We are not hopeful that this will be implemented very soon. We want the implementation of this law,” said Rahimullah Samandar, head of the chamber.
“Our demand from the government is to bring ease in the process of taxes collection because this has provided the way for corruption and has created challenges for industrialists,” said Faiz-ul-Haq Mishkani, an investor.