Revenue collection swells in eastern Afghanistan

21 May 2010

Revenue collection swells in eastern Afghanistan

21 May 2010 - Customs houses in eastern Afghanistan are making extraordinary progress in collecting revenues, far above the set target, thanks to new technologies put in place and the simplification of Customs procedures.

 

According to data made available to United Nations Assistance Mission in Afghanistan (UNAMA) by the Customs officials in the eastern regional hub of Jalalabad, the officials were able to collect 3 billion Afs (US$ 60 million) soon after the Automatic System of Customs Data (ASYCUDA) was set up in Jalalabad and Torkham along the Afghanistan-Pakistan border in January 2006.

The target was 2 billion Afs (US$ 40 million), said Jalalabad Customs House Director Ehsanullah Kamawal.

Since then, the revenue collection has been swelling every year.

“In 2009, the targeted amount was 6.75 billion Afs (US$ 135 million) but we were able to collect almost 9.07 billion Afs (US$ 181.4 million), 34 per cent more than the target set by the Ministry of Finance,” said Mr Kamawal.

In 2005, before the new system was put in place with assistance from the World Bank and the UN Office for Project Services (UNOPS), a total of 2.1 billion Afs was collected in revenue.

Although Jalalabad is the capital city of Nangarhar province, it also serves as the eastern regional hub and main point along the Torkham-Kabul highway, the lifeline of the Afghan capital and the international military forces operating in the region and beyond.

Mr Kamawal said the main goods that are imported from Pakistan through Torkham and Jalalabad Customs points are cooking oil, tea, rice, flour, garments, construction materials and food items.

The main items that are exported through these points are apricot, grape, animal skins and dry fruits.

Eastern Afghanistan’s Customs operation has five wings – central office in Jalalaabad, goods reviewing point at Torkham, mobile customs team, check posts in different bordering areas, and a branch at the Jalalabad airfield.

“Unfortunately, the branch in the airport is not functioning now, and needs to be rehabilitated,” said Abdul Samad, press officer at the Jalalabad Customs House.

Mr Kamawal, who oversees the Customs operation in eastern Afghanistan, is upbeat about the rise in revenue collection. Nangarhar Customs House plays a very vital role in the increase of national income and economic growth,” he said.

Technological upgrading aside, the main reasons behind the rise are “strict enforcement of Customs procedures, deployment of professional staff members, prevention of corruption, simplification of complicated Customs procedures and transparency,” said Mr Ehsanullah.

Customs houses in Jalalabad and Torkham have been built “in accordance with the international standard” with financial assistance from the European Union.

In the past, before the new system was introduced, it used to take two to three days for a goods-laden truck in Pakistan to get approval to enter Afghanistan, as all the request letters and approvals had to be hand-delivered.

“Now, it can be done in 15 minutes,” said Mr Samad.

Mukhlis Ahmad, a trader who is involved in the trading business between Afghanistan and Pakistan, said a new machine for scanning of lorries and trucks has played a key role in identifying goods without unloading them.

“It has made our work much easier,” said Mr Ahmad. He, however, complained that the authorities slap double taxation – two per cent by the Customs Department and another two per cent by the Revenues Department in advance.

Customs Director Kamawal said the revenues continue to swell despite the deterioration in the security situation on the other side of the border.

The President of Afghanistan has issued a decree allocating 300 hectares of land in the Amanullah Khan township, 15 kilometres from Jalalabad towards Torkham, for the construction of more Customs points, including a proposed railway station.

“This station will be a connecting bridge between Afghanistan and Pakistan,” said Mr Kamawal.

By Shafiqullah Waak and Tilak Pokharel, UNAMA

Website: Afghanistan Ministry of Finance

Website: Afghanistan Customs Department