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Concerns Grow Over Tax Evasion in Afghanistan

The union of private companies said on Tuesday that corruption in government institutions, lack of access to financial information and not getting work licenses are ways in which people avoid paying taxes.

Sirajul Haq Murad, head of the union, said that the government does not have any plan to enforce the rules:

“There are ways that people use to escape from taxes. The majority of the people try to not get the license. They get the license when other ways fail."

Khan Jan Alokozay, a member of the Chamber of Commerce and Investment of Afghanistan, also blamed the government.

“The Ministry of Finance and the Ministry of  Commerce do not coordinate. If the Ministry of Commerce—which distributes licenses—provides facilities, and the Ministry of Finance limits the license, such work is not helpful.”

Shamroz Khan Masjidi, spokesman for the Ministry of Finance (MoF) said that they have been controlling the marketplaces and the licenses are not necessary for tax collection: 

“We receive taxes from every economic activity, whether a business has a license or not. If the license is a condition, the Ministry of Cūommerce is responsible for that,” said Masjidi.

Concerns Grow Over Tax Evasion in Afghanistan

The Ministry of Finance said that they are aware from the bazaars and receiving taxes form every economic activity.

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The union of private companies said on Tuesday that corruption in government institutions, lack of access to financial information and not getting work licenses are ways in which people avoid paying taxes.

Sirajul Haq Murad, head of the union, said that the government does not have any plan to enforce the rules:

“There are ways that people use to escape from taxes. The majority of the people try to not get the license. They get the license when other ways fail."

Khan Jan Alokozay, a member of the Chamber of Commerce and Investment of Afghanistan, also blamed the government.

“The Ministry of Finance and the Ministry of  Commerce do not coordinate. If the Ministry of Commerce—which distributes licenses—provides facilities, and the Ministry of Finance limits the license, such work is not helpful.”

Shamroz Khan Masjidi, spokesman for the Ministry of Finance (MoF) said that they have been controlling the marketplaces and the licenses are not necessary for tax collection: 

“We receive taxes from every economic activity, whether a business has a license or not. If the license is a condition, the Ministry of Cūommerce is responsible for that,” said Masjidi.

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