The ministry of finance has said that national revenue covers 30 percent of the national budget and that they have collected more than that.
But economists and investors have claimed that government needs to bring changes to the way in which they collect this revenue.
However, it is believed that security threats are the main reason that investors leave Afghanistan. But the Chamber of Commerce and Industry has said that strict and improper methods of tax collection also caused about 2,000 investors to withdraw from Afghanistan in recent months.
“Between 50 to 300 people become jobless when a business or factory closes down. Then where does government employ them? How do they find them new jobs?” asked Siamuddin Peserlay, spokesman for the chamber.
Furthermore, investors also believe that some of the government’s new plans do not match with traditional methods of business in Afghanistan.
Rahimuddin, chairman of the board of private entrepreneurs said: “Government has created a new balance system that requires one month, three months, six months or yearly reports while Afghan traders have complained about one year balances – there are balances that have not been reconciled from six months to one year.”
Meanwhile, the ministry of finance has insisted on the increase of national revenue and said that last year the International Monetary Fund determined 114 billion Afghani as the target for national revenue while the ministry has collected more than 120 billion Afghani.
“The total budget for this year is 455 million Afs of which 30 percent of it will be covered by national income and the rest will be provided by the international community. Afghan government policy is to increase the national income to cover a bigger part of the national budget,” said Ajmal Hamid Abdul Rahimzai, spokesman for the ministry of finance.
However, economic analysts insist that government need to review national revenue collection methods, especially the collection of tax.
Siyar Quraishi, a banking and finance analyst: “Government should have some supportive exemption from tax policies to encourage investors to invest in the country.”
As the Brussels Summit looms, government tries to implement its plans to prove that they have fulfilled their promises to the international community – an important step to secure the continuation of non-military aid to the country.