Afghanistan

Type of profile
Country
Overview

Recent reform steps

The Afghanistan Revenue Department (ARD) has taken major steps to foster domestic revenue mobilisation.

  • Since 2017, the tax legislation has witnessed a rapid change, with the amendment of the Income Tax Law and the Tax Administration Laws, manuals, procedures and regulation becoming viable. The change in tax laws resulted in the termination or simplification of old processes that used to cause multiple problems for the taxpayers.
  • An e-filing and e-payment system was introduced as a new step towards revenue growth. The implementation of the SIGTAS, the focus on digitalisation and the use of computer-based services in the capital and the provinces have been major achievements within the revenue department.
  • Audit process have improved and boosted revenue mobilisation. Professional staff was hired in this area and lengthy audit processes were shortened.
  • With the organisational structure as a traditional obstacle towards good governance, national and international experts have worked together to have a more robust and comprehensive structure over the past few years. The employment of youth and new talents as well as appropriate postings have been a major breakthrough.

Progress achieved

Despite slow growth, domestic revenue reached a record high of USD 2.329 billion in 2018, an increase of 12% vis-à-vis the level from 2017. Strong revenue growth was supported by an improved tax administration, with estimated arrears collection of USD 0.129 billion and a surge in non-tax revenues. The budget execution increased from 83% in 2017 to 92% in 2018, with the development budget execution rate reaching 93%.

Outlook: DRM priorities in 2019

Priority activities
  • Trainings for all staff of the ARD on various topics through the Tax and Customs Academy

  • Trainings for different groups of taxpayers

  • Long term and short-term courses and trainings

  • Trainings for senior staff of the ARD on various management topics

Expected outcomes
  • Increased revenue and taxpayer satisfaction
  • Increased taxpayer compliance
  • Increased revenue
  • Professional negotiations
  • Enhanced administration

Policy coherence for development

The Income Tax Law and the Tax Affairs Administration Laws provide proper guidance and rulings for tax authorities and other agencies pertaining to tax-related issues and tax collection. Furthermore, there have been several Memorandum of Understanding (MoU) signed between the ARD, the Ministry of Finance and other agencies, which facilitate cooperation in many areas. For example, a specialised taxation court is now operational. Further, the ARD signed a MoU with the Financial Transactions and Reports Analysis Centre of Afghanistan, a unit of the Afghanistan Bank.

DRM Project Data as Recipient

all
2015
2016
2017
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
United Kingdom
year all
8 projects
amount 32 876 081.44 USD
disbursement 12 128 003.60 USD
Extractives Sector Programme: Technical Assistance to the Ministry of Mines
year 2015
1 project
amount 0.00 USD
disbursement 635 570.00 USD
Extractives Sector Programme: Geological Support
year 2015
1 project
amount 0.00 USD
disbursement 533 030.00 USD
Technical Assistance
year 2015
1 project
amount 30 597 280.00 USD
disbursement 7 855 250.00 USD
Technical Assistance to Ministry of Mines
year 2016
1 project
amount 494 827.25 USD
disbursement 532 666.90 USD
Geological Support
year 2016
1 project
amount 557 071.40 USD
disbursement 427 027.80 USD
Technical Assistance
year 2016
1 project
amount 1 226 902.79 USD
disbursement 1 470 699.90 USD
Geological Support
year 2017
1 project
amount 0.00 USD
disbursement 278 273.00 USD
Technical Assistance to Ministry of Mines
year 2017
1 project
amount 0.00 USD
disbursement 395 486.00 USD
United States of America
year all
23 projects
amount 19 766 576.00 USD
disbursement 29 842 882.00 USD
Technical Assistance for Afghanistan . Revenue Policy and Administration
year 2015
1 project
amount 60.00 USD
disbursement 0.00 USD
Afghanistan Trade and Revenue (ATAR) . Fiscal policy
year 2015
1 project
amount 1 498 170.00 USD
disbursement 959 500.00 USD
Afghanistan Trade and Revenue (ATAR) . Trade and Investment Capacity
year 2015
1 project
amount 1 800 000.00 USD
disbursement 3 662 390.00 USD
Afghanistan Trade and Revenue (ATAR) . Trade and Investment Enabling Environment
year 2015
1 project
amount 2 400 000.00 USD
disbursement 2 304 110.00 USD
Public Financial Management Project . Fiscal policy
year 2015
1 project
amount 4 500 000.00 USD
disbursement 510 660.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2016
1 project
amount 0.00 USD
disbursement 867 950.00 USD
Public Financial Management Project
year 2016
1 project
amount 2 400 000.00 USD
disbursement 3 933 440.00 USD
N/A
year 2016
1 project
amount 1 350 000.00 USD
disbursement 509 160.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 1 582 100.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 2 408 610.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 867 950.00 USD
Technical Assistance for Revenue Administration and Revenue Policy - Afghanistan
year 2016
1 project
amount 0.00 USD
disbursement 82.00 USD
Technical Assistance for Afghanistan - Revenue Policy and Administration
year 2016
1 project
amount 14 586.00 USD
disbursement 21 190.00 USD
Public Financial Management Project
year 2016
1 project
amount 1 350 000.00 USD
disbursement 509 160.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2016
1 project
amount 0.00 USD
disbursement 1 582 100.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2016
1 project
amount 0.00 USD
disbursement 2 408 610.00 USD
Public Financial Management Project
year 2017
1 project
amount 658 400.00 USD
disbursement 3 247 220.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 542 010.00 USD
disbursement 696 460.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 1 264 690.00 USD
disbursement 1 625 070.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 450 000.00 USD
disbursement 460 850.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 237 060.00 USD
disbursement 0.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 101 600.00 USD
disbursement 0.00 USD
Public Financial Management Project
year 2017
1 project
amount 1 200 000.00 USD
disbursement 1 686 270.00 USD
Australia
year all
1 project
amount 4 104 161.23 USD
disbursement 4 104 161.23 USD
Afghanistan Reconstruction Trust Fund
year 2017
1 project
amount 4 104 161.23 USD
disbursement 4 104 161.23 USD
European Commission
year all
1 project
amount 3 550 896.18 USD
disbursement 0.00 USD
Support to PFM reform
year 2017
1 project
amount 3 550 896.18 USD
disbursement 0.00 USD
Japan
year all
1 project
amount 10 883.99 USD
disbursement 10 883.99 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 10 883.99 USD
disbursement 10 883.99 USD
Totals
year all
34 projects
amount 60 308 598.84 USD
disbursement 46 085 930.82 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
United Kingdom
year 2015
3 projects
amount 30 597 280.00 USD
disbursement 9 023 850.00 USD
Extractives Sector Programme: Technical Assistance to the Ministry of Mines
year 2015
1 project
amount 0.00 USD
disbursement 635 570.00 USD
Extractives Sector Programme: Geological Support
year 2015
1 project
amount 0.00 USD
disbursement 533 030.00 USD
Technical Assistance
year 2015
1 project
amount 30 597 280.00 USD
disbursement 7 855 250.00 USD
United States of America
year 2015
5 projects
amount 10 198 230.00 USD
disbursement 7 436 660.00 USD
Technical Assistance for Afghanistan . Revenue Policy and Administration
year 2015
1 project
amount 60.00 USD
disbursement 0.00 USD
Afghanistan Trade and Revenue (ATAR) . Fiscal policy
year 2015
1 project
amount 1 498 170.00 USD
disbursement 959 500.00 USD
Afghanistan Trade and Revenue (ATAR) . Trade and Investment Capacity
year 2015
1 project
amount 1 800 000.00 USD
disbursement 3 662 390.00 USD
Afghanistan Trade and Revenue (ATAR) . Trade and Investment Enabling Environment
year 2015
1 project
amount 2 400 000.00 USD
disbursement 2 304 110.00 USD
Public Financial Management Project . Fiscal policy
year 2015
1 project
amount 4 500 000.00 USD
disbursement 510 660.00 USD
Totals
year 2015
8 projects
amount 40 795 510.00 USD
disbursement 16 460 510.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
United Kingdom
year 2016
3 projects
amount 2 278 801.44 USD
disbursement 2 430 394.60 USD
Technical Assistance to Ministry of Mines
year 2016
1 project
amount 494 827.25 USD
disbursement 532 666.90 USD
Geological Support
year 2016
1 project
amount 557 071.40 USD
disbursement 427 027.80 USD
Technical Assistance
year 2016
1 project
amount 1 226 902.79 USD
disbursement 1 470 699.90 USD
United States of America
year 2016
11 projects
amount 5 114 586.00 USD
disbursement 14 690 352.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2016
1 project
amount 0.00 USD
disbursement 867 950.00 USD
Public Financial Management Project
year 2016
1 project
amount 2 400 000.00 USD
disbursement 3 933 440.00 USD
N/A
year 2016
1 project
amount 1 350 000.00 USD
disbursement 509 160.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 1 582 100.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 2 408 610.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 867 950.00 USD
Technical Assistance for Revenue Administration and Revenue Policy - Afghanistan
year 2016
1 project
amount 0.00 USD
disbursement 82.00 USD
Technical Assistance for Afghanistan - Revenue Policy and Administration
year 2016
1 project
amount 14 586.00 USD
disbursement 21 190.00 USD
Public Financial Management Project
year 2016
1 project
amount 1 350 000.00 USD
disbursement 509 160.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2016
1 project
amount 0.00 USD
disbursement 1 582 100.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2016
1 project
amount 0.00 USD
disbursement 2 408 610.00 USD
Totals
year 2016
14 projects
amount 7 393 387.44 USD
disbursement 17 120 746.60 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Australia
year 2017
1 project
amount 4 104 161.23 USD
disbursement 4 104 161.23 USD
Afghanistan Reconstruction Trust Fund
year 2017
1 project
amount 4 104 161.23 USD
disbursement 4 104 161.23 USD
European Commission
year 2017
1 project
amount 3 550 896.18 USD
disbursement 0.00 USD
Support to PFM reform
year 2017
1 project
amount 3 550 896.18 USD
disbursement 0.00 USD
United Kingdom
year 2017
2 projects
amount 0.00 USD
disbursement 673 759.00 USD
Geological Support
year 2017
1 project
amount 0.00 USD
disbursement 278 273.00 USD
Technical Assistance to Ministry of Mines
year 2017
1 project
amount 0.00 USD
disbursement 395 486.00 USD
United States of America
year 2017
7 projects
amount 4 453 760.00 USD
disbursement 7 715 870.00 USD
Public Financial Management Project
year 2017
1 project
amount 658 400.00 USD
disbursement 3 247 220.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 542 010.00 USD
disbursement 696 460.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 1 264 690.00 USD
disbursement 1 625 070.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 450 000.00 USD
disbursement 460 850.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 237 060.00 USD
disbursement 0.00 USD
Afghanistan Trade and Revenue (ATAR)
year 2017
1 project
amount 101 600.00 USD
disbursement 0.00 USD
Public Financial Management Project
year 2017
1 project
amount 1 200 000.00 USD
disbursement 1 686 270.00 USD
Japan
year 2017
1 project
amount 10 883.99 USD
disbursement 10 883.99 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 10 883.99 USD
disbursement 10 883.99 USD
Totals
year 2017
12 projects
amount 12 119 701.40 USD
disbursement 12 504 674.22 USD