MoF Announces Tax Reductions to Support Investment, Production and Economic Growth
2026-07-12
MoF Announces Tax Reductions to Support Investment, Production and Economic Growth
On Sunday, July 12, 2026,
The Ministry of Finance held a ceremony at the Government Media and Information Center (GMIC) to announce new tax reductions. The event was attended by senior officials of the IEA, several cabinet members, industrialists, businesspeople and media representatives.
Speaking at the event, the Administrative Deputy of the PM, Mawlawi Abdul Salaam Hanafi, appreciated the Ministry of Finance and the GMIC for organizing the ceremony. He said that the Islamic Emirate gives special attention to investors, industrialists, traders and small business owners, and is working to provide them with greater support and better facilities.
He explained the new tax measures, stating that the tax on imported oil and gas has been set at AFN 50 per ton. He also said that the tax on the transportation of goods, which was previously 1 percent, has now been reduced to 0.5 percent. Moreover, the individuals with an annual income of up to AFN 120000 are exempt from income tax, while those earning between AFN 120000 and AFN 1.2 million will pay a 10 percent income tax. He further stated that the paying taxes is the Islamic and national responsibility of every citizen, urging tax officials and inspectors to perform their duties with fairness, good conduct and in accordance with Islamic principles.
Furthermore, the Minister of Finance, Mullah Mohammad Naser Akhund said that under the guidance of the leadership of the Islamic Emirate and through the efforts of the Ministry of Finance, important tax exemptions and reductions have been introduced to make the tax system simpler and more organized. He stated that these tax exemptions are not only intended to make tax payments easier but also serve as an important economic policy tool to encourage investment, increase production and exports, create more employment opportunities and provide a better environment for the growth of the private sector.
Likewise, the Director General of Administrative Affairs, Sheikh al-Hadith Mawlawi Noorul Haq Anwar addressed the gathering, saying the transparency and coordination are essential for the country's development. He described the Ministry of Finance's efforts to modernize tax systems as an important step and said these reforms would help establish a transparent and efficient tax system. He also described the tax reductions as an important measure to support the private sector while promoting justice and Islamic principles.
Furthermore, the Minister of Industry and Commerce, Nooruddin Azizi said that directing investment toward production, industry and exports is essential for economic growth, economic security and sustainable development. He added that every new factory creates job opportunities for young people and represents an important step toward Afghanistan's economic self-reliance.
He explained that the purpose of reducing taxes is not to decrease government revenue but to increase production, investment and employment, as economic activities expand, the government revenues will also continue to grow over time.
During the event, representatives of the private sector also delivered remarks and described the government's decision as valuable and vital.
The ceremony concluded with prayers for the prosperity and success of the country and the system.
