IntroductionAfghanistan, similar to other developing countries has trouble with development tax revenue to the level that could cover public expenditure.
Currently the government budget mainly depends on international donor aid. Replacing donor funds with domestic tax revenue and increasing self sustainability require commitment to focus on those factors that positively affect taxpayer’s behavior toward tax evasion and reduction of government tax revenueTo address the challenges mentioned above, the government of Afghanistan specifically Afghanistan revenue department has adopted some key policies and administration reforms in order to increase tax revenue. These adopted reforms and policies are centralization of tax collection, self-assessment system and issuing tax identification number to taxpayers.However, the implemented reforms and policies could not bring mandatory outcomes (maximum tax collection and self sustainability) owing to multiple reasons such as lack of human capacity, lack of standard management information system of taxation and complicated tax procedure, The parliament of Afghanistan suspended VAT (Value Added Tax) to 2020, because the revenue department cant implement VAT due to above reasons. The implementation of VAT is very difficult it require standardize technology and professional human capacity. Therefore, in this research it will be attempted to examine the effective role of human capacity, standard management information system and simplified procedures on improving tax collection and to increase in domestic revenue.
Purpose of my research The main objectives of the research could be summarized in the following points:1. To determine the complication of tax administration procedures in Afghanistan 2. To find out whether there is significant influence of implementation of management information system.3. To analyze whether there is significant positive relation between human resource capacity and adoption of computerized tax system as VAT is going to be impended in recent years and it required to have computerized tax system.
Research QuestionI am going to answer the following question in my research very clearly and academically to each one1. How to effectively implement VAT (Value Added Tax) in Afghanistan and how we collect taxes through VAT.2.
How to Finish Extra Bureaucracy in tax offices3. How to use information technology for development of taxation system to facilitate for both Government and taxpayers to save time and money.4. Which factors are essential and how to improve the customer services section of revenue department to accelerate tax collection process. Methodology and DataThis research use both qualitative and quantitative approach of research. For quantitative approach the data would be collected by conducting a survey from taxpayers, tax officers and tax offices and for qualitative approach data would be collected the help of interview, questioner, magazine and books.
Implication (Result)Through my research topic will be able effectively implement standardize taxation management information system and effectively implement VAT(Value Added Tax) with revenue department team, simplify tax procedures ,capacity building of our civil servants in my specific field of study and replace international consultants who are working in revenue department at strategic level. Afghans are more effective than international experts because afghans understanding the psychological and sociological context of Afghanistan. Further, these consultants have to leave Afghanistan once their contracts expire. Their departure leaves a gap which affects the effectiveness of programs. Therefore, Afghanistan needs Afghan professionals who have the capacity to develop strategic plans of taxation , implement development programs and achieve long term national goals to increase domestic revenue toward economically sustainability ConclusionIntellectually and academically :PEACE Project is excellent and effective platform for me which meet worldwide students collect together under same purpose to get master degree for their country development.
I will made best attempt address all tax challenges,