KABUL (Pajhwok): The Ministry of Finance (MoF) says new tax relief measures have been approved in four areas, including reduced income tax for companies and private healthcare centres, an increased tax exemption threshold for individuals, lower taxes on goods transportation and revised fuel taxes.
Mawlavi Abdul Salam Hanafi, deputy prime minister for administrative affairs, announced the measures at a ceremony, saying the new tax reductions had been approved based on an order from the Islamic Emirate of Afghanistan (IEA) leadership covering legal entities, individuals, goods transportation and fuel sectors.
Hanafi said that, except for mining extraction companies, all other legal entities — including companies and private healthcare centres — would now pay 10 percent income tax, down from the previous 20 percent.
Regarding individual income tax, he said the tax exemption threshold had been doubled. Previously, individuals with annual incomes of up to 60,000 afghanis were exempt from tax, but the limit has now been raised to 120,000 afghanis.
He added that individuals with annual incomes between 120,000 and 1.2 million afghanis would pay 10 percent tax, while those earning more than 1.2 million afghanis annually would be subject to 15 percent tax.
Hanafi said the tax on goods transportation had also been reduced from 1 percent to 0.5 percent.
Regarding fuel taxes, he said companies importing gas and oil in bulk would be required to pay a fixed tax of 50 afghanis per tonne of oil sold.
First-hand fuel and gas sellers would pay 100,000 afghanis annually, second-hand sellers 70,000 afghanis, third-hand sellers 50,000 afghanis, and fourth-hand sellers 25,000 afghanis in fixed taxes.
He added that those purchasing fuel and gas by tonne and selling them by kilogram would pay 80 afghanis in tax per tonne.
Hanafi said 10 percent of the collected taxes would be allocated to paying the salaries of police, traffic officials, teachers at educational institutions, doctors and other sections of society.
Speaking at the same event, Finance Minister Mullah Mohammad Nasir Akhund said that, as a result of the leadership’s attention and the ministry’s efforts, several tax exemptions and facilities had been introduced to help citizens fulfil their tax obligations more easily and on time.
He said the ministry was focused not only on revenue collection, effective management of public financial resources and maintaining economic stability, but also on implementing financial policies aimed at promoting sustainable economic growth and investment.
The minister said the Finance Ministry was committed to creating further tax-related facilities for citizens, industrialists and traders.
He added that tax exemptions were not only forms of relief but also important economic policy tools that encourage investment, increase production and exports, and create new employment opportunities.
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