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Nearly $1 Billion In Taxes Levied On Contractors In Afghanistan

May 14, 2013

by RFE/RL

The U.S. government's leading oversight authority on Afghanistan's reconstruction says the Afghan government has levied nearly $1 billion in taxes on contractors supporting Washington's efforts in the war-torn country.

In a report issued on May 14, the Special Inspector General for Afghanistan Reconstruction (SIGAR) said a recent audit found that the Afghan Ministry of Finance levied $921 million in taxes and penalties on just 43 contractors supporting U.S. government efforts in Afghanistan.

Taxes were also levied on contractors that both the U.S. and Afghan government agree should be exempt.

Special Inspector General John Sopko said in a statement, "It's disturbing that the Afghan government is targeting American contractors with unjust taxes and intimidation."

Sopko said it was "disturbing" that U.S. agencies let it happen at the expense of U.S. taxpayers.

Source: http://www.rferl.org/content/afghanistan-contractors-taxes-one-billion/24986044.html

Copyright (c) 2013. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.