AT-KABUL: A Memorandum of Understanding on cooperation was signed Saturday between Ministry of Finance and Kabul Municipality regarding contingent extension of tax-payer license upon their tax clearance.
According to a statement, the memorandum of understanding was signed in order to collect and manage the tax-payer revenue better, Kabul Municipality is required to extend and cancel the tax-payer license, conditional to their tax clearance and subject to the tax laws.
There was no communication between the Ministry of Finance and the Kabul Municipality before signing of the memorandum of understanding.
“The memorandum of understanding aims further cooperation and coordination between Ministry of Finance and the Municipality of Kabul” said Najeebullah Wardak, deputy finance minister signing. “According to the memorandum of understanding, the municipality is obliged to renew license of those tax-payers owing in the past subject to their tax clearance “he added.
“With the implementation of the MoU, tax evasion will be avoided” ”said Abdullah Habibzai, Mayor of Kabul. “After this, the tax-payers should pay their taxes in accordance with the laws and regulation at the given time in order to renew and obtain license, otherwise they will be denied access to license” he added.
It is worth mentioning that, the memorandum of understanding facilitates and speeds up the process of licensing and tax clearance, accurate statistics of tax-payers and identification of new categories of taxpayers, raise their level of compliance, enforce the same laws, increase the quality of service for citizens, simplifies the process of data sharing between the parties, saves costs and increase national revenues.