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Private firms in Kandahar evade taxes

Private firms in Kandahar evade taxes

Feb 24, 2011 - 14:50

KANDAHAR CITY (PANinfo-icon): Several private companies are not paying taxes in the southern province of Kandahar, the governor's office said on Thursday.

The companies directly sign contracts with foreigners and do not give information about their assets in order to dodge taxes, the governor's spokesman alleged.

As a result, government revenue has decreased, Zalmay Ayubi told Pajhwok Afghan News. For transparency reasons, the contract-signing is monitored by provincial officials, he said.

Litigations have increased over the past four months between Afghan companies and foreigners based in the province, the provincial council head told reporters on Wednesday.

Ahmad Wali Karzai said representatives of private companies had lodged complaints with the council. "Many Afghan construction firms have signed contracts with foreigners or sold building materials to them. The foreigners either take away their money or delay payments."

The foreigners had either left the country or stayed at the Kandahar Air Field, but Afghan contractors did not know them, Karzai added.

According to officials of some Afghan companies, foreigner contractors have deprived them of $300,000 to $700,000, the provincial council head said.


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