Contacts: In Kabul: Abdul Raouf Zia (93) 700 280800 In Washington: Erik Nora (202) 458 4735 enora@worldbank.org WASHINGTON, May 26, 2009 ─ The World Bank today approved US$6.81 million in additional grant assistance to Afghanistan’s ongoing Emergency Customs Modernization and Trade Facilitation Project. The main objective of the project is to support government efforts in establishing a more efficient customs and transit regime. The World Bank approved in December 2003 a US$31.2 million credit for the original project. Since then, steady progress is being made. Customs revenue collection has increased from US$50 million in 2003-4 (Solar Year (SY) 1382) to over US$ 399 million in 2008 (SY1387). Since the implementation of an Automated System for Customs Data (ASYCUDA), more than 735,000 transit forms have been issued and over US$14 million collected as transit fees as of March 25, 2009. The Afghan Customs Department (ACD) has been making progress on reforms and modernization, and the computerization of Customs is gradually establishing tighter control over border and inland transit with the aim of bringing in more customs revenues. Yet, domestic revenue collection at US$714 million in 2006/07 (3.7 percent of GDP) in Afghanistan remains one of the lowest in the world. In 2006/07 this revenue financed only 62.5 percent of the government’s operating expenditures. Fifty-five percent of this domestic revenue came from tax collected on international trade by the ACD. Tax collection on international trade has increased in real terms over the last five years, reflecting growth in dutiable imports as well as improved collection efforts of the customs department. “Given the extraordinary challenges Afghanistan is facing, the country has made necessary progress in terms of customs revenue collection,” said Amer Zafar Durrani, World Bank Senior Transport Specialist and Project Team Leader. “However, much remains to be tackled to further improve revenue collection, particularly addressing the alleged corruption in the service. Deepening the government’s reform agenda in the sector will be essential to not only increase fiscal sustainability but also to facilitate legitimate trade while stopping the cross border movement of dangerous goods.” The additional financing will support further rollout of ASYCUDA Declaration Processing System (DPS) and completion of the ongoing construction of the remaining truck parking area at Jalalabad Inland Clearance Depot (ICD). It will also continue technical assistance provided to ACD by the Customs Regional Advisors on operational and procedural issues. Additionally, technical assistance by UNCTAD on key trade facilitation activities including WTO accession, review of transit agreements and improvement in the freight forwarding industry will be provided to the Ministry of Commerce and Industries (MOCI). Note to Editors: The IDA credit for the Emergency Customs Modernization and Trade Facilitation Project carries no interest, a 0.75 percent service charge, and has a 40-year maturity, with a 10-year grace period. For more information on the Bank’s work in Afghanistan, please visit: http://www.worldbank.org.af For more project information for Emergency Customs Modernization and Trade Facilitation project, please visit: http://go.worldbank.org/SEB25GRFT0 |
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