The Main Sources of Raising Domestic Revenue in Afghanistan

Abstract

The governmental treasuries historically derived income from conventional sources available to administrations, augmented by extraordinary channels. Revenue emanated from taxation, administrative proceeds, public property income, and debt escalation—established conduits directing a segment of the national income to public authorities. This study retrospectively scrutinized the primary sources of Domestic Revenue Mobilization in Afghanistan, utilizing both primary and secondary data. Primary data was acquired from current Revenue Department employees at the Ministry of Finance (MoF), employing a survey research method through questionnaires. Secondary data, sourced from the World Bank, International Monetary Fund websites, journals, articles, and books, contributed to a comprehensive analysis. The findings indicated that Afghan government revenues historically emanated predominantly from customs duties on international movement of goods and services, and domestic taxation. Notably, natural resources, exemplified by foreign investments in copper mines, emerged as a pivotal revenue stream. It was essential to underscored that foreign assistance programs exhibited shortcomings in management, necessitating heightened supervision.