034 - Wahabzadeh, W. A.

Wahid Ahmad Wahabzadeh:

Assessment of current taxation in Afghanistan



This study aimed to assess the current taxation system in Afghanistan. Since the pre-Taliban taxation in Afghanistan was out of date and was not well functioning in accordance to the new economics trend in the country, the system was reformed and amended in 2005. In addition, government also brought some adjustment to the reformed system in 2009. The system was designed in such a way that could comply with equity and efficiency principles and also to increase government revenues in order to finance public goods and services. However, the assessment has focused on the achievements of the current system, its main characteristics and the taxpayers’ awareness and expectations towards the new reformed system. The empirical assessment of the system was mainly pivoted on the available sources of secondary data and interviews with tax authorities. The sources were mainly tax laws and regulations during pre-Taliban, Taliban and new government in Afghanistan for comparison of different systems and highlighting major reforms and amendments in the system. In addition, published documents, reports and websites of relevant national and international organizations were explored to extract data related to the achievements in the public finance sector. The assessment’s results revealed that reformed steps has been positive with regard to efficiency and equity consideration and tax revenue remarkably increased since 2004. Additionally, the sources of tax revenue also varied considerably. Nevertheless, existing of challenging obstacles caused that the system could not fully succeed fulfilling its intended objectives.

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