The Impact of Tax Reforms on Economic Growth of Afghanistan

Afghanistan�s taxation system is improving but remains one of the greatest impediments to economic growth and foreign direct investment the economy of Afghanistan is fully dependent on international assistance and foreign aid, with 47.5 % of Afghanistan�s general budget and 28 % of its development budget subsidized by the international community. This is aggravated by the fact that the government of Afghanistan has been unable to meet the country�s fiscal needs for the past thirteen years, due in large part to the absence of an effective tax management mechanism. Accordingly, the government of Afghanistan should revisit its approach to revenue management and mobilize domestic revenues more Effectively to limit its dependency on international support. The research put lights on different edges and proposing improvement and positive change in tax administration. The tax reform is necessary in the current challenging situation to determine the government collect its revenue and meet the domestic expenditure in medium terms. The research design is a systematic plan to study a scientific problem in tax administration in the ministry of finance of Afghanistan. The design of the study is exploratory method. The exploratory research methods chose to study the emerging factors in the tax administration in the current situation in afghan revenue directorate.