Afghanistan’s chamber of commerce and investment stated on Monday that the Ministry of Finance (MoF) has increased tariffs on ferrous metal (metal with iron) by 14 percent of the import's value, which, according to the organization, will have a severe impact on the price of metal in the market, affecting the construction industry.
The latest tax was 16 percent of the metal’s value, but now 14 percent has been added, so, currently, a 30 percent tax of the imported metal’s value is levied.
According to the chamber of commerce and investment, the increased tariffs will have a severe impact on the prices of metals in the market.
“We have received complaints that the tariffs were increased without any discussion. These tariffs have further increased the price of metals in the markets. This means that the lack of production of metal in Afghanistan has caused the rise in prices,” said Zaman Hashemi, head of the chamber of investment and commerce.
However, the MoF stated that they have increased the tariffs based on advice given by the private sector, and in order to support iron’s domestic producers.
“The decision was made in coordination with the chamber of commerce and the chamber of industries. Both the chambers have membership in the tariffs committee. The main goal is to support domestic products,” said Shamroz Khan Masjidi, spokesman for the MoF.
Based on the official numbers, Afghanistan uses 85,000 metric tons of metals annually, with 80% being imported from foreign countries.