WASHINGTON-A government watchdog is looking into Afghanistan's practice of taxing US companies involved in America's multibillion-dollar effort to rebuild the war-torn nation. The office of the Special Inspector General for Afghanistan Reconstruction will audit fees charged contractors by Kabul for supplies, materials and other items imported into Afghanistan or bought there, according to an inspector general memo obtained by The Associated Press.
The fees include tariffs, customs duties and other taxes that eventually come out of US taxpayer dollars because they're charged to reconstruction projects run by the Pentagon, State Department or the US Agency for International Development. "This is a step in the right direction," said a statement from Democratic Rep. Peter Welch and Republican Rep. Walter Jones. "We're hopeful this audit will and bring to an end the absurd practice by the Afghan government of taxing America's effort to rebuild their country.
"While such behavior may make sense in (Afghan President) Hamid Karzai's world, it makes no sense to the American taxpayer," they said. The US has appropriated roughly $89.42 billion for Afghanistan reconstruction since 2002. But President Barack Obama is winding down the effort, having requested $9.7 billion for reconstruction for the budget year beginning in October-a 34 per cent reduction from the $14.8 billion Congress provided for 2012.
It's unclear how much money has been collected by Kabul from contractors doing the work - building highways, schools, facilities for Afghanistan's growing security forces and so on. But a number of American contractors complained last year that they had received bills for overdue taxes and were threatened with arrest and revocation of their licenses to operate there.
