The Afghan Finance Ministry said on Friday that it would grant tax breaks for up to three years to business owners who invest in the industrial sector.
Officials at the ministry said if business owners invest in the sector, they will be exempt from paying tax from the start of production for up to three years and will be exempt from paying the four percent tax on profits.
The ministry officials said these adjustments are included as amendments in the Income Tax Law and have been endorsed by the cabinet and will soon be sent to the House of Representatives.
“In order to encourage the private sector and attract investment and to create jobs for people, we introduced some of these facilities to the Income Tax Law,” said Abdul Qadir Zazai general director of revenues of the ministry of finance.
Meanwhile, a number of factory owners have said that considering the decline in investment in the country, this new move could have a positive impact on the increase of investment in the country.
“The law is not yet prepared but there are some rumors but yet it is welcomed if government supports any industry in the country,” said Parwiz Qarizada chairman of the Iron and Steel Works Union.
According to the Ministry of Finance, factory owners have had to visit the ministry four times a year to hand in balance sheets but under the new process they will only have to hand these in once a year.