Afghanistan Lures Investors with Tax Breaks and Tariff Benefits

Afghanistan's Industry and Commerce Minister, Alhaj Nooruddin Azizi, announced five-year tax breaks for investors in sectors like gold mining. At Assocham's session, he cited trade hurdles due to Pakistani tensions but emphasized Afghanistan's investment potential, offering tariff support and urging India to simplify trade processes.

Afghanistan is seeking to attract investment across various sectors by offering significant incentives. Industry and Commerce Minister Alhaj Nooruddin Azizi said the Afghan government is prepared to provide five years of tax breaks to companies investing in new areas such as gold mining.

Addressing an interactive session organized by business chamber Assocham, Azizi highlighted existing tensions with Pakistan as a barrier to trade but noted Afghanistan's substantial investment potential. He promised tariff support and land allocation to interested firms, adding that a mere 1 percent tariff would apply if Indian firms import machinery.

The minister called on India to eliminate minor trade obstacles, crucial for improving bilateral interactions. Reduced hurdles like visa issues, air corridor restrictions, and banking transaction complications could enhance trade relations between the two countries, Azizi remarked during a six-day visit to India.

(With inputs from agencies.)