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Afghanistan levies USD 1bn illicit taxes on US-funded projects-SIGAR

in Afghan Business

Afghanistan levies USD 1bn illicit taxes on US-funded projects-SIGAR

SIGARThe Special Inspector General for Afghanistan Reconstruction (SIGAR) has said the Afghan Ministry of Finance has imposed nearly USD 1bn in business taxes since 2008.

According to the report issued by SIGAR, the ‘illegitimate’ taxes are levied on 43 contractors working on US funded reconstruction projects in Afghanistan.

“On the basis of a bilateral agreement between the US Department of State and Afghan government, Afghanistan exempts contractors from certain taxes. The USD 921mn in taxes on just 43 contractors is shocking, given the arrangements we had with the Afghan government,” Radio Liberty quotes Elizabeth Field Singer, Assistant Inspector General of Audits and Inspections at SIGAR.

Ms. Singer expressed her concerns about the negative impacts of this action on the US reconstruction efforts in Afghanistan.



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