License extension made conditional to tax record clearance

KABUL (Pajhwok): The Ministry of Finance (MoF) and Kabul Municipality have signed a Memorandum of Understanding (MoU) regarding cooperation on contingent extension of tax-payer license upon their tax clearance, a statement from the MoF said on Saturday.

According to the MoU, in order to collect and manage the tax-payer revenue better, Kabul Municipality is required to extend and cancel the tax-payer license, conditional to their tax clearance and subject to the tax laws.

There was no communication between the MoF and the Municipality of Kabul before signing of the memorandum of understanding. The MoU was signed at the Government Media and Information Center (GMIC) in presence of media.

“The MoU aims further cooperation and coordination between Ministry of Finance and the Municipality of Kabul” said Dr. Najeebullah Wardak, deputy minister of revenue and custom. 

“According to the memorandum of understanding, the municipality is obliged to renew license of those tax-payers owing in the past subject to their tax clearance “he added.

“With the implementation of the MoU, tax evasion will be avoided” ”said Mr. Abdullah Habibzai, Mayor of Kabul. “After this, the tax-payers should pay their taxes in accordance with the laws and regulation at the given time in order to renew and obtain license, otherwise they will be denied access to license” he added.

It is worth mentioning that, the memorandum of understanding facilitates and speeds up the process of licensing and tax clearance, accurate statistics of tax-payers and identification of new categories of taxpayers, raise their level of compliance, enforce the same laws, increase the quality of service for citizens, simplifies the process of data sharing between the parties, saves costs and increase national revenues

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