Afghanistan offers 5-yr tax break for Indian investors, Pg12

Key Highlights:

• Afghanistan is offering 5-year tax breaks to Indian businesses investing in sectors like gold mining.
• Commerce and Industry Minister Alhaj Nooruddin Azizi of Afghanistan concluded a 6-day visit to India on Monday.
• A commercial attache from Afghanistan is expected in India within a month to boost bilateral trade.
• An air cargo corridor between India and Afghanistan will soon be activated to improve trade.
• Both countries aim to increase bilateral trade beyond the current $1 billion.

Detailed Insights:

• Alhaj Nooruddin Azizi met with External Affairs Minister S Jaishankar and MoS Commerce Jitin Prasada to discuss investment opportunities.
• Afghanistan is focusing on attracting Indian investment in mining, agriculture, health, IT, energy, and textiles.
• Indian firms importing machinery for investment in Afghanistan will be charged a tariff of only 1%.
• The Afghan government wants gold mining to be processed within the country to create local jobs.
• Visa issues, air corridor operations, and banking transactions are identified as minor hurdles to trade.
• The joint working group on trade, commerce, and investment will be reactivated to enhance bilateral trade.
• The air freight corridor on the Kabul-Delhi and Kabul-Amritsar routes will be activated soon.

Key Concepts Involved:

• Bilateral Trade: Exchange of goods and services between two countries.
• Tariff: A tax or duty imposed on goods when they are transported across international borders.
• Commercial Attache: A diplomatic representative who specializes in promoting trade and investment.