Editor in Chief: Moh. Reza Huwaida Tuesday, April 30th, 2024

Officials Say NATO Tariff Exemption Enabling Bad Business Practices

Officials Say NATO  Tariff Exemption Enabling Bad Business Practices

KABUL - Fuel imported for the NATO forces still in Afghanistan is exempted from custom tariffs. But recent reports by Afghan officials have suggested the exemption distorts competition in the market and enables large amounts of subpar quality fuel to enter the country.

At a time when the Afghan economy is facing a drop off in international investment and public budgeting problems, experts have urged the government to tighten up revenue streams, especially when it comes to trade through the country's customs offices.

"There are hundreds of businessmen who import oil from foreign countries to Afghanistan with custom tariffs, but, at the same time, large volumes of oil are being imported without custom tariffs, which creates unhealthy business competition," Oil Importers Association chief Azerakhsh Hafizi said on Thursday. "Businessmen are not prepared to import oil under such circumstances," he added.

Ministry of Finance (MoF) officials have confirmed that issues exist when it comes to duties and regulation of fuel imports, but emphasized that NATO forces have been asked to report their fuel procurement details every four months to ensure that proper accounting takes place.

"We asked the NATO officials to clarify their needs for oil every four months, that way for misuse of oil imports through NATO is prevented," MoF spokesman Ajmal Hamid Abdul Rahimzai said.

Last week, the Afghanistan National Standard Authority (ANSA) reported NATO's tariff exemption was a major reason behind the Afghan fuel market being flooded with low quality product. (Tolonews)