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Over 60% of Afghan mid-level taxpayers evade taxes

On average, 15,000 mid-level taxpayers deny paying an estimated 17 billion afghanis amount in taxes annually in Afghanistan. An official at the Ministry of finance (MoF) said some individuals in power or being powerful refused to pay taxes. They included parliament members and those having close links with government officials and tribal elders, he said. Producers or business companies with investment or products value ranging between five hundred million to one billion afghanis are considered middle level taxpayers. The criterion is different for other provinces. NGOs, wedding halls, restaurants, hotels, tourist agencies, schools and others are in the category of middle level taxpayers provided their investment could meet the defined standards.
41 billion afg tax money is evaded
According to Amena Ahmadi, head of middle-level taxpayer department at the MoF, of total 23,000 middle level taxpayers, 9,955 paid 10 million afg in 2015, while in 2016 of the total 25,500 middle level taxpayers, 13,000 paid 13 billion afs. She added during the first five months of the ongoing year, 7,000 middle level taxpayers of the total 25,500 paid 5.4 billion afs in tax. The statistics show since fiscal year 2015 until May 2017, among every 10 middle level taxpayers, six evade taxes. They also show during the past two and a half years, 15,000 middle level taxpayers on average had escaped taxes. Keeping in view the average level of companies who pay taxes, it is estimated that the unpaid taxes in the past two and a half years payable by 15,000 companies could be over 41 billion afs. The middle level tax department refused to provide the list of these 15,000 tax evading companies to Pajhwok. The department officials said work on preparing the list was underway and a copy of the list would provide to Pajhwok when completed. They, however, provided a list of 14 health institutes, 19 schools and higher educational institutes and 19 hotels in Kabul, which do not pay taxes.
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