Economy

Taliban cabinet approves 40 percent fee reduction for vendors

The Taliban’s cabinet on Tuesday approved a new regulatory scheme for street vendors, along with a 40 percent reduction in vendor fees, according to a Taliban statement.

The decision was made during the 21st session of the Taliban cabinet led by Taliban chief minister Mohammad Hassan Akhund, the statement says.

The fee reduction will apply once the regulation is implemented, although the statement did not specify when the changes would take effect or what enforcement mechanisms would be used.

As of the most recent available data, Kabul hosts approximately 500,000 street vendors, a number that has risen significantly due to widespread unemployment and economic hardship following the Taliban’s return to power in 2021.

Costs incurred by street vendors

According to information available online, in 2022 after Taliban imposed new regulations, street vendors were mandated to purchase municipality-approved carts or booths, priced between 14,000 and 22,000 Afghanis (approximately $200 to $314). Monthly rental fees vary by location.

This included Shah-e Du Shamshera: 1,800 Afghanis ($25), Kot-e Sangi: 1,500 Afghanis ($21), Dasht-e Barchi: 1,100 Afghanis ($15).

In some areas, fees can escalate to 3,000 Afghanis ($42) monthly, depending on stall size and location.

Additional expenses

Vendors often incur extra costs, such as paying for security services to protect their stalls overnight, which can amount to 800 Afghanis ($11) per month.

The combination of mandatory fees and declining consumer spending has severely affected vendors’ incomes. Many report daily earnings as low as 300 to 400 Afghanis ($4.40 to $5.70), a significant drop from previous earnings of around 2,000 Afghanis ($29) per day. This financial strain has led some vendors to abandon their stalls or return to informal street vending, risking penalties.