Lowering Customs Duties Increased National Revenue and reduced the raw material prices in the markets

Wed, Oct 27 2021 2:11 PM

After the new government assumed power in the country, in consultation with the technical group, reduced the custom duties in order to provide better services and facilities to provide a suitable environment for traders and supply of goods and raw materials at low rates. Since flour, oil and sugar are more consumed and imported in the country than other goods; the custom duty of these goods were reduced. Formerly the custom duty of a ton of flour was 3095 Afghanis, now it is1000 Afghanis, which shows a decrease of 67.7 percent compared to the past. Likewise, the custom duty of one ton of oil was 5885 Afghanis, but now it is 2012 Afghanis, which shows a decrease of 8.65% compared to the past. More over, in the past the custom duty of one ton of sugar was 3483 Afghanis, while it is 1548 Afghanis now, which shows a decrease of 6.55%.

Another high-consumption item is imported drugs that had more than 20,000 codes and opened the door to corruption. Currently there is only one code and has made easier to import, smuggling of drugs has been prevented, and further coordination is under way with the Afghanistan Food and Drug Authority – AFDA.

In addition to these problems, in the previous government, most of the goods’ status were changed (such as almonds, cashews, energy drinks, cigarettes, cell phones, PVC, etc.) while traders are now encouraged to voluntarily and legally pay the custom duty any misrepresentation (changing the products’ status).

These measures not only prevented smuggling of goods and misrepresentation, but also had a positive effect on collection and increases of revenue in the country. Revenues. For example, in the 26 days of Sonbola, customs revenue was 1.07 billion Afghanis. However, revenues collected in the 26 days of Mizān was 4.6 billion Afghanis, which represents an increase of 3.5 billion Afghanis.

To this end, the Economic and Financial Commission of the new government is fully committed to the import of high quality and legal raw materials, oils, fuels and medicines until the winter ahead, and in this regard, makes every effort for the welfare of the people.

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