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HISTORY OF TAX IN AFGHANISTAN
Sadaat Sayeed Asef First year economy master student of Termez state university asef.saadat. 3@gmail. com
Abstract: A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes issues and may be paid in money or as its labor equivalent. The first known taxation took place in Ancient Egypt around 3000-2800 BC. Most countries have a tax system in place to pay for public, common, or agreed national needs and government functions. Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes based on an annual income amounts. Most countries charge a tax on an individual's income as well as on corporate income. Countries often also impose wealth taxes, inheritance taxes, estate taxes, gift taxes, property taxes, sales taxes, use taxes, payroll taxes. In economic terms, taxation transfers wealth from households or businesses to the government. This has effects that can both increase and reduce economic growth and economic welfare. Consequently, taxation is a highly debated topic in all over the world.
Keywords: tax history, Income tax, Direct and indirect taxes, the taxation system
Аннотация: Налог - это обязательный финансовый сбор или какой-либо другой вид сбора, взимаемый с налогоплательщика (физического или юридического лица) государственной организацией с целью финансирования государственных расходов и различных государственных расходов. Неуплата, а также уклонение от уплаты налогов или сопротивление им караются по закону. Налоги состоят из прямых или косвенных налогов и могут уплачиваться деньгами или их трудовым эквивалентом. Первое известное налогообложение произошло в Древнем Египте около 3000-2800 лет до нашей эры. В большинстве стран действует налоговая система для оплаты государственных, общих или согласованных национальных потребностей и государственных функций. Некоторые взимают фиксированную процентную ставку налога с личного годового дохода, но большинство налоговых сборов основываются на сумме годового дохода. В большинстве стран взимается
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налог как с доходов физических лиц, так и с доходов компаний. Страны часто также вводят налоги на имущество, налоги на наследство, налоги на наследство, налоги на дарение, налоги на имущество, налоги с продаж, налоги на использование, налоги на заработную плату. С экономической точки зрения, налогообложение передает богатство от домашних хозяйств или предприятий правительству. Это имеет последствия, которые могут как увеличивать, так и снижать экономический рост и экономическое благосостояние. Следовательно, налогообложение - очень обсуждаемая тема во всем мире.
Ключевые слова: налоговая история, налог на прибыль, прямые и косвенные налоги, система налогообложения.
Here, in this article, it is just included about the brief history of the tax in Afghanistan from 1140 to 1399 AD (1761 to 2020 BC) in different governors or kings' regime. Indeed, there was tax before the mentioned period of time also in Afghanistan but it was in a completely different way such as usher (one component out of ten), it means that at time people were giving tax for the government one kg wheat from their 10 kg or from every property like this. Or Zakat (Zakat is a financial obligation in Islam, according to which Muslims must pay a certain amount of 9 items for consumption in the lives of the poor and other public social affairs. These 9 commodities are cash, gold and silver, three rewards cattle, sheep and camels and four grains wheat, barley, raisins and dates. The amount of payment for each of these goods is different and is determined in Jurisprudence (. Jurisprudence is an Islamic knowledge to obtain the practical rules or religious duties of Muslims. Still Muslim people are continuing rules of Zakat as it is one of the obligations of Islam but not Usher. But beside that taxation issues are also developing in different parts as usual and as well as other countries with its slight differs.
For the first time in the regime of Hazrat Ahmad Shah Baba (Kind of Afghanistan from 1125 to 1151), financial affairs were given more importance, as in 1140 AD, among other government organizations, a branch called Diwan Homayoun (Ministry of Finance in today's life) was established. The first responsible person for this duty was Sardar Abdullah Khan Pupalzai which was called Diwan Beigi (Beigi's court), and soon the title of Beigi's court became Mustafa al-Malik (treasure keeper of a country) over time, and his authority was under the authority of the Minister of
INTRODUCTION:
TAX HISTORY IN AFGHANISTAN
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Finance of this region. Financial affairs were carried out in the center of Mostofi Al-Malik and in the provinces this new task was being handled by senior students, faculty students, village or area elders and everyone who has a better knowledge. Mostofi al-Malik, with the power of his command, united and coordinated the other financial affairs of the provinces and was in charge of public care and supervision at that exact time and period. Taxes were collected under different names in different era. Some of them were mandatory and some were paid to the government voluntarily. For example, the head of the tax was an optional tax that the people of Hazarajat (region where an ethnic group called Hazara were living), brought a certain amount of oil to the king's court as gift. Such revenues and expenditures, which were collected separately in the castle of king, demanded the king's order. Eventually, by passing the time, these revenues became mandatory and were included in other government taxes, and the most important types of taxes collected until 1298 was from citizens of Mazar Sharif as independent families, from Hazarajat as capitalist and land tax, from Khawaja Angor (name of place) as they own land and big gardens (grapevine).
Before the kingdom of Amir Habibullah Khan, the area elders collected government revenues and writing down the expenditures in individual offices according to the different ethnic groups but during his regime, all revenues were being collected in same way from different ethnic groups and dealing in different demands of government. Later, during the domination of Amir Abdul Rahman Khan, some of the taxes that were previously collected from the people were exempted, but the people of Gardiz were greeting the court and king with some oil and a few horses, which was later on counted as a mandatory tax on government revenues. Also it is to mention that taxes were also collected from the people of Herat and other provinces under different names. Beside everything, he shaped the collection of taxes religiously and pretended that God commands Muslims to pay their taxes, which belong to the treasury, according to the instructions of the Holy Quran. Initially, in the years 1000-1200, taxes were collected from the people in the form of goods, through which the salaries of government officials were transferred to the landowners, and the mentioned officials referred to the landowners with their own remittances. They used to take remittances from the landlords. The duration of this process turned into rent. The income of a place was rented by one or two people. The mentioned people collected taxes according to their wishes and handed them over to the government in the amount of rent also according to their wishes. Over the time,
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these problems led to other reforms in the government in accounting and finance system.
Because until the reign of Habibullah Khan, the financial accounting organization was not clear and in this era, government revenues and expenditures did not have an increased form, although taxes and all government revenues had a certain sum, which was generally clear in the accounts of debtors and based on it in the general office. The fundamental changes that took place in the field of accounting and finance and the conversion of tax of goods into cash in 1298 during the time of Shah Amanullah Khan, as some taxes that were collected in the past in a separate or forced manner or mandatory were exempted.
After the civil war in 1295, the government of Afghanistan found it necessary to deal with the revenues and expenditures of the government of the modern and modern accounting system and considering the friendly relations that Afghanistan had with the Turkish state (period of Ata Turk), a Turkish expert taught the new calculation and financial system to Afghan state's responsible elements. The tax system lasted until 1303 and the following year, due to the implementation of the development plan of the government budget, a budget deficit was adopted until 1303. Taxation At that time, the system of tuition (monthly), which was a commodity from the Italian calculation, was promoted, and government revenues and expenditures were re-established under the above system until the time of Habibollah Kalkani. In the time of Mohammad Nader Khan, the tuition system was re-introduced and it was promoted in 1314, but in 1314, along with other developments, the government wanted to use a more modern financial and accounting system. From 1312 to 1314, the Ministry of Finance trained a number of officials of the Ministry of Finance in the field of economic and banking finance to study government revenues and expenditures by an Italian trainer. This time it was scheduled/tableau financing system. And this system was functioning in all over of Afghanistan till to 1331. In 1339, the Ministry of Finance hired financial and accounting specialists with the help of the Cooperation Office (GNS) and a better system started function. By this way, by the beginning of 1345, a new law in financial field offered some new systems but soon in 1351 another new and developed tax system came by the prime minister of government, the only difference was that, the fixed tax was 12 % and the maximum tax from the income was 60%.
Until the 1880 AD, there was a kind of tax on marriage and some other issues which is classified and shown as an example.
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Taxation issue Amount in Rupee (that times Afghan currency)
Marrying with young girl/lady 121.2
Marrying with widow women 61.2
Having birth in a family (male) 4
Having birth in a family (female) 2
Circumcision 12
DEVELOPMENT IN TAX SYSTEM
While Afghanistan has a long tax history, it is very difficult to get detailed information about tax development in this country. Slight ambiguity indicates that tax collection began two and a half years ago. For example, in 1747, the person in charge of the tax office was called Diwan Beigi (recipient of something) also known as Mostofi (treasure keeper), was an honest person trusted person. As people were giving their taxes to him and they had complete trust on him that he is enough faithful to the government.
The ministry of finance established and started its implementation at 1919. And law of tax from income introduced completely at 1965. And by passing time many sorts of taxes have been included into Afghanistan's tax and financial system.
But in recent years, major changes have taken place in the tax system in Afghanistan. For example, until March 2004, customs products were subject to different norms, which were later reduced. In the new system used in customs, the following tax norms are used: Previous Norms Vs New norms 1 to 16 percent 2.5 percent 16 to 60 percent 5 percent 61 to 100 percent 10 percent 101 to 150 percent 16 percent
TAXES ARE CLASSIFIED INTO THE FOLLOWING CATEGORIES: (1-3) Direct and indirect taxes:
Direct tax: includes income tax on individuals, companies, share of rent, subject,
fixed tax, land and repairs (real estate), transfer of ownership.
Indirect tax: includes customs product, profit tax and production tax.
(2-3) Tax on property, income and expenses
Property tax: Property tax: Includes land tax and property transfer tax.
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Income tax: includes corporate finance, rent tax, fixed tax Goods tax: includes customs products and profit tax. (3-3) Taxes on property, income, domestic and foreign trade Property tax: includes land tax, property transfer tax.
Income tax: Includes personal income tax, corporate income tax, rent tax, fixed tax and subject tax.
Domestic trade tax: includes profit tax (hotels, restaurants, mobile airlines) and production tax.
International trade tax: includes customs product (export product, import product).
Afghanistan's national tax system has changed in recent years. Significant changes have been made to simplify the tax clearance process. Investors are trained in their responsibilities to pay taxes and government officials are trained in tax management. Taxpayers are required to have a taxpayer identification number (TIN). All investors must record their earnings even if they are not taxed. All information provided by taxpayers is protected by the Ministry of Finance unless formally and legally requested. Taxpayers must have a record book and use the next method of calculation. The fiscal year is from 1 serious (December 21) to the end of the arc (December 20)
Also, there was an official letter from the general directorate of revenue office to the big taxpayers' presidency due to a taxation fine exemption. This exemption has been approved in two different big meetings/gatherings and approved by government authorities considering the situation of taxpayers who have not been able to pay their taxes together with fines. It shows that in anyway, current government is trying to find a better way to collect taxes to serve a better service to the citizens.
RECENT CHANGES IN TAXES OF AFGHANISTAN
TYPES OF TAXES IN AFGHANISTAN
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CONCLUSION
Afghanistan had an Islamic government and still has. 99% of its citizens are Muslims and follow the Islamic laws and regulations that all Muslims are obliged to obey.
Therefore, in the beginning, taxation was in an Islamic scheme as Usher or Zakat and being collected from the citizens according to the determined price of each particular item and property which has been specified in the article.
Whereas the increase in population, commencing different demands of the government and the improvement of the global tax system, either here government commenced utilizing modern taxation system alongside the Islamic regulations.
Thus, the taxation system is regulated as a modernized form considering foreign countries, Islamic rules are also being complemented as Zakat.
It's necessary to indicate, due to the lack of awareness and several problems and difficulties, people aren't paying their taxes on time therefore they are facing many fines from official government offices. Exactly, by getting double fines it creates extra problems in their lives and can't be able to effort paying these plus taxes (it's mentioned 1000 AF, in an official government letter for one day delay which equals to approximately 13 USD-Official letters, RVPO 1604, in 1399,04,27, and it's
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instructions). Based on these situations government exempted the approval fines to taxpayers due to the purpose of bringing the huge facility to make them able to pay their taxes.
I must consider paying taxes can contribute to the power and the ability of a government which return to themselves in various services.
1. Article of Tawzihilmasail (clarification of Islamic issues), prepared by Ali Asghar Karbaschiyan in 1339 AD.
2. Siraj Al-Tawarikh (Light of History), 3rd publish, Kabul in 1915, page 945.
3. Tax calculation in Afghanistan, 2nd publish, by Sayeed Masood, page 30.
4. Afghanistan Tax Service (@ard.mof.gov.af. Tax Lawyer). Afghanistan Revenue Department (ARD).
5. Official letter, RVPO 1604, in 1399/04/27 and it is instruction.
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