domingo, diciembre 4, 2022
InicioNewsAfghanistan's small companies battle to hold on because the economic system crumbles

Afghanistan’s small companies battle to hold on because the economic system crumbles

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KABUL — In a cramped workshop, reeking of glue and filled with piles of plastic straps and rubber soles, half a dozen males and boys hunched over scarred tables final week, scraping and hammering, stitching and gluing. By day’s finish, they might produce 70 pairs of ladies’s sandals, able to ship to avenue bazaars at a deeply discounted worth of $8 every.

“We don’t make males’s sneakers anymore. All the lads are jobless,” defined Abdul Bashir, 55, the workshop’s proprietor. He has been making sneakers his total grownup life — by means of a civil battle, stints of communist and Islamist rule, a ruinous flood of low cost Chinese language footwear, and twenty years of battle between Taliban and U.S.-backed Afghan forces.

Now, eight months after the Taliban takeover of the nation, he and different small-business homeowners are confronting their direst disaster thus far. Gross sales in every single place are down drastically. The brand new rulers have promised some reduction, together with partial forgiveness of again taxes and a slight discount within the earnings tax. However many are uncertain that token gestures will reverse their plummeting fortunes.

“Decreased taxes is not going to assist us if we can not promote something, meet the lease or hold our staff paid,” mentioned Bashir, whose enterprise is one in every of about 120,000 small companies in Kabul, starting from magnificence parlors to clay-oven makers. “We’re consuming all our earnings,” he lamented.

However Taliban authorities are pursuing more-sweeping adjustments. With nearly all overseas support, financial institution enterprise and monetary transactions halted, officers say they hope to spice up home income by ending a long time of corruption, modernizing authorities monetary techniques and creating confidence amongst native enterprise homeowners.

Najeeb Ahmadjan, an official on the authorities’s Income and Tax Administration, personifies this imaginative and prescient. If profitable, he mentioned, their efforts ought to assist ease the nation’s financial disaster — and show to Afghans and the world that the brand new rulers are each succesful and dedicated.

“Earlier than the Islamic Emirate got here, there was way more financial exercise and worldwide help. However there was additionally a whole lot of corruption,” Ahmadjan mentioned, utilizing the Taliban’s identify for its authorities. “Now, there may be a lot much less help however a lot much less corruption, and way more dedication from the highest. Authorities staff really feel extra vitality, and public taxpayers really feel extra belief.”

In market stalls, workshops and one-room places of work throughout the capital, the consensus appears to be that the Taliban has good intentions however has not but found out the way to assist small companies, not to mention handle a big, badly ailing economic system. Some retailers expressed frustration and anger. Others had nearly given up in despair.

At a metal-roofed block of furnishings showrooms stuffed with beds, desks and wardrobe chests, proprietor Yasin Hamidullah mentioned he had bought just one piece up to now month, a big cupboard that he let go for $60. He had simply borrowed cash to pay his month-to-month lease of $150, principally to have a protected place to retailer his unsold stock.

“Once we had overseas clients, we may hardly sustain with the demand. Now they’ve all left and no person comes to purchase,” Hamidullah mentioned. He determined to not pay his final earnings tax invoice of $250, anticipating to get the promised tax break, nevertheless it by no means got here. “I really feel cheated,” he mentioned. “I’m nonetheless paying the identical tax I paid 5 years in the past — and we’re promoting nothing.”

A number of miles away, in a maze of auto components retailers with mufflers and mirrors dangling from the ceilings, Samir Ahady is dealing with a unique downside. The cabinets in his retailer are lined with automobile batteries from Japan and Thailand. For the reason that Taliban raised customs charges, he mentioned, his value per battery has gone up from $90 to $100, whereas his gross sales have cratered.

“I’ve observed some optimistic adjustments. Taxes are quicker and simpler to pay,” Ahady mentioned. “However the costs are all greater, folks don’t have any jobs they usually can’t afford to maintain their vehicles fastened.”

“My earnings is 80 % down, and my complete life has modified,” he added. “No extra household picnics, no extra meat with dinner, beggars in every single place. The long run is completely unclear.”

Noor Ulhaq Omeri, who heads the capital’s affiliation of small companies and artisans, has a extra affected person method to coping with the brand new authorities. He has met repeatedly with Taliban officers and proposed numerous types of tax reduction. Most have been turned down to date, however he nonetheless has hope.

“For a few years, the system was dangerous and there was a whole lot of corruption. You needed to pay bribes for the whole lot,” mentioned Omeri, 55.The brand new authorities do appear dedicated to fixing this downside, and we’re blissful about that, however they’ve been far-off from governing for a very long time. They could be trustworthy, however there’s a distance. Individuals need to cooperate, however they’re nonetheless mistrustful.”

Throughout the capital, in 22 neighborhood tax places of work, day by day interactions between small-business homeowners and new authorities officers are starting to bridge that hole. In Khushal Khan, a busy mixed-income district, the tax workplace director, Obaidullah Omarkhel, has been on the job for simply six weeks.

On a latest morning, Omarkhel sat at his desk, which was empty apart from a stack of huge detailed maps of the district. Each jiffy, one other taxpayer entered hesitantly with a sheaf of papers in hand. Omarkhel reviewed the papers fastidiously, then signed and handed them again with a couple of pleasantries, sending the client to a close-by workplace to pay.

“I need to make sure to not make any errors,” Omarkhel mentioned. “We need to encourage folks to pay, to not power them.

Whereas acknowledging the nation’s lengthy battle with official corruption, he mentioned he reassures his clients that issues are completely different now. “I inform them the previous is previous,” he mentioned. “I’m right here now, and that is my accountability.”

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