KABUL, JUL 13: The leader of the Islamic Emirate has approved a series of tax relief measures in four key sectors, a move officials say is aimed at encouraging investment, boosting economic activity, and easing the financial burden on citizens and the private sector.
Speaking at a ceremony announcing the new measures, Deputy Prime Minister for Administrative Affairs Abdul Salam Hanafi said the tax reductions apply to legal entities, individual taxpayers, property transfers, and fuel imports, including oil and gas.
Hanafi said that, with the exception of mining companies, the income tax on all legal entities, including companies and private hospitals, has been reduced to 10 percent.
He added that the annual tax exemption threshold for individual taxpayers has been doubled from AFN 60,000 to AFN 120,000, meaning individuals earning up to AFN 120,000 per year will be exempt from paying income tax.
“Previously, the income tax rate was 20 percent. From now on, it has been reduced to 10 percent for all eligible entities,” Hanafi said.
According to Hanafi, the tax on oil and gas imports has also been reduced from AFN 100 to AFN 50 per metric ton, while the property transfer tax has been cut from 1 percent to 0.5 percent.
Meanwhile, Finance Minister Mohammad Naser Akhund said that since the Islamic Emirate returned to power, 13 tax relief measures have been introduced.
“The taxes you pay today finance the Islamic Emirate’s defense, security, intelligence, and ordinary government expenditures,” Akhund said.
At the same event, Minister of Industry and Commerce Nooruddin Azizi urged the private sector and investors to pay their taxes transparently and avoid tax evasion.
“We ask taxpayers to uphold transparency and remain committed to fulfilling their tax obligations,” Azizi said.
Officials of the Islamic Emirate described the latest tax relief measures as part of broader efforts to support investment, stimulate economic growth, and improve the business environment in Afghanistan.
