ABA convened Chief Level Operation Meeting of its member banks
Date: December 28, 2019
On December 28, 2019, ABA convened Chief Level Operation Meeting of its member banks to discuss on collection of Small Taxes through commercial banks. The meeting was chaired by Mr. Najibullah Amiri ABA Executive Director. The collection of taxes through commercial banks encourage banking culture among the public, strengthen formal inclusion and bring more transparency to collection of taxes/revenue to the government.
Da Afghanistan Bank and the ministry of Finance and at high level government forum, decided not to accept tax payments through DAB branches between 25000 to 50000, rather it should be collected through banks, and transferred to ministry of Finance account very conveniently and transparently. ABA held member banks meeting – operation to seek their feedback on their capacity, consensus on providing reasonable banking services to the Small Tax payers, where the volume of accounts only in Kabul reach to around 70,000 classes of small businesses and the figure will change crossing to the 33 remaining provinces. In the past, the tax below AFN 50,000 was collected directly through DAB, transferred to MOF revenue account, but recently based on DAB financial inclusion inclusion decided o facilitate Small tax payment between AFN 25000 to 50000 through commercial banks’ bank account and below AFN 25000 can be collected in cash through commercial banks as well as Da Afghanistan Bank branches. The Large Tax and Medium Tax payments are already carried out by commercial banks, where it facilitated more convenience to the tax payers and accelerated tax collection process/supported transparency. In this meeting, ABA advised the member banks to be ready for acceptance of this transition and take prerequisite steps. In principle, all banks were agreed for providing quality service to the government, since it generate revenue for the banks as well as encourage banking culture in the country. The banks had some recommendations to be submitted to Da Afghanistan for smooth shifting of this services.
