Afghanistan Offers 5-Year Tax Exemption To Indian Investors In Gold Mining, New Sectors

Seeking investments in a range of sectors, Afghanistan Industry and Commerce Minister Alhaj Nooruddin Azizi on Monday said his government is ready to offer five years of tax breaks to firms investing in new sectors, including gold mining.

Speaking at an interactive session organised by business chamber Assocham, Azizi said tensions with Pakistan creating hurdles in trade.

"There is a huge potential available in Afghanistan. Even you will not find a lot of competitors. You will also receive tariff support, and we will be able to give you land. The five-year tax exemption will be given to companies who may be interested to invest in new sectors," the minister said.

Afghanistan will charge only 1% tariff if Indian firms import machinery for investment, he said.

"Gold mining will definitely require the technical and professional team or professional companies. So initially, we are requesting that you send your team, they can do the research, they can do the exploration initially, and then they can start work.

"However, the condition is that we will expect it to be processed in the country so jobs can be created," the minister said.

The visiting minister urged the Indian side to remove "minor" hurdles to boost bilateral trade.

"We want to build the relationship between India and Afghanistan. There are some minor hurdles which really affect the overall process, like visa, air corridor, banking transactions. So these have to be sorted to improve bilateral trade and investment," he said in the presence of Indian government officials.

The Afghanistan minister is on a six-day visit to India.