Taliban Cuts Corporate Taxes to Encourage Investment in Afghanistan
The Taliban administration has announced a reduction in corporate income tax from 20 percent to 10 percent and implemented a new tax structure for individuals and property transfers. According to officials, these measures aim to facilitate business and investment.
Mawlawi Abdul Salam Hanafi, Deputy Administrative Chief of the Prime Minister’s Office, stated on Sunday at the Media Center that these tax reductions are being implemented under the guidance of the Taliban leader. He added that the use of reduced corporate taxes—except for mining companies—is conditional on joining the tax system and the digitalization of financial operations, a step that he said would simplify tax review and collection.
According to the details provided, individuals earning between 60,000 and 120,000 Afghanis annually will be exempt from paying taxes. Incomes between 120,000 and 1.2 million Afghanis will be subject to a 10 percent tax, and incomes above that threshold will be taxed at 15 percent.
Additionally, the tax on the transfer of movable and immovable property has been cut from 1 percent to 0.5 percent. In the oil and gas sector, a fixed tax of 50 Afghanis per ton has been set for bulk reserves, while commission sellers pay an annual fixed tax ranging from 25,000 to 100,000 Afghanis depending on their level of activity. Furthermore, traders who purchase oil and gas by the ton and sell it by the kilogram are required to pay 80 Afghanis per ton.
The Deputy Administrative Chief urged tax collectors to treat citizens “according to Islamic principles and human ethics” and to strive for greater transparency in the tax system.
While the Taliban administration describes these reductions as a step toward supporting the private sector, economic activists have consistently emphasized the need for regulatory stability, transparency in revenue usage, and a predictable investment environment—issues that have been major challenges to economic growth in recent years.
