The Ministry of Finance (MoF) on Monday said at a meeting in Kabul that large companies evading tax will face serious consequences.
At the same event, officials from the ministry honored eight companies for continuously paying their taxes on time.
The eight companies honored for prompt payment were Afghan Wireless, Saladin Security Company, Afghanistan International Bank, Kam Air Company, Emtiaz Construction Company, Alokozay International Trade Company, Alokozay Beverage Company and Automotive Service Company.
“According to the law, we first inform the taxpayers to pay their taxes. If they do not pay the taxes, then there are options including travel bans on owners and seizing property. Although we have carried out such actions against taxpayers, we will keep trying to implement the law,” said Shafiqullah Qarizada, acting finance minister.
They also said in future they will freeze bank accounts of large companies that fail to pay tax.
The ministry did not on Monday name the companies that evade tax nor did they disclose the amount of money owed to them.
However, according to information provided by the ministry, currently around 490 large companies are registered taxpayers and that last year more than 18 billion AFs in taxes was collected from these companies - which made up 12 percent of the total national revenue.
“We have implemented good plans in collecting taxes from large taxpayers and these plans really have encouraged taxpayers in paying their taxes,” said Abdul Habib, director of the ministry’s large taxpayers department.
Officials from the Afghan Chamber of Commerce and Industries (ACCI) meanwhile said problems with the tax collection process is a reason why some companies refuse to pay their taxes.
ACCI urged the finance ministry to reduce corruption in the ministry and increase the staff capacity.
“We want government to employ more professional employees to collect taxes more accurately,” said Khan Jan Alokozay, ACCI deputy head.
Officials from the directorate of large taxpayers said they are trying to establish a new center for tax collection which will facilitate the process and will make tax collection easier.