Taliban announced tax relief measures for hotels and fuel stations during a press conference on Tuesday.
Abdul Salam Hanafi, the Taliban’s deputy chief, said that businesses with annual revenues of up to two million Afghanis ($28,000) would be exempt from paying taxes. Those with higher revenues will be taxed at a rate of 0.3 percent on earnings above the two-million-afghani threshold, he said.
Hanafi emphasized that taxes collected from various businesses would be allocated to infrastructure development projects and the salaries of over 1.2 million government employees.
The Ministry of Finance also announced a reduction in the fixed tax rate for businesses from 1.5 percent to 0.3 percent. The ministry’s Deputy for Revenue and Customs noted that this decision, ordered by Taliban leader Hibatullah Akhundzada, includes new tax exemptions for fuel stations, hotels, and adjustments to the fixed taxes on gas, oil, and restaurants.
Hanafi elaborated that under the new directive, businesses earning up to two million afghanis annually would not be taxed, while those exceeding this amount would pay a 0.3 percent tax on the surplus.
“For businesses with annual sales up to two million afghanis, no tax will be levied. For those exceeding two million afghanis in annual sales, only the amount above two million will be taxed at 0.3 percent,” Hanafi explained.
He also announced a complete waiver of past tax penalties and a shift to annual tax assessments for businesses, moving away from the previous five-year review cycle.
Regarding hotel taxes, Hanafi stated that hotels are categorized into three tiers for tax purposes. High-end hotels will continue to pay a 10 percent tax, while hotels and guesthouses with quarterly revenues below 750,000 afghanis will now pay a 2 percent tax, down from 5 percent. Hotels and wedding halls with quarterly revenues exceeding 750,000 afghanis will be taxed at 5 percent.
Hanafi noted that the taxes collected would be used for development projects and infrastructure, as well as paying the salaries of over 1.2 million employees, including teachers, healthcare workers, and police officers.
According to the Ministry of Finance, 206 types of businesses, including small merchants and shopkeepers, are currently operating across the country. Previously, some citizens, especially shopkeepers, had complained about the Taliban using force and violence to collect exorbitant taxes.
