The Tax Evasion Practices in Immovable Property Tax Collection in Jalalabad District of Afghanistan

Abstract

This research explores the tax evasion practices associated with collecting immovable property taxes in the Jalalabad district of Nangarhar province. A qualitative approach was employed to delve into these issues, with primary data gathered through structured interviews conducted with local authorities.  The findings of the study remarkably demonstrate that the common factors of IPT tax evasion are inadequate regulation, ineffective enforcement of reporting standards, lack of ownership information, bribery and corruption, the underground economy, false property information, and illegal property transactions.  Beside this, the findings significantly further demonstrate that immovable property tax evasion is influenced by several cultural and socioeconomic issues that include limited access to education, perceived instances of corruption, and a lack of faith in governmental institutions. Eventually, the findings further demonstrate that NRD primarily use property inspection and financial audits as means to ascertain instances of immovable property tax evasion.  The local authorities are strongly recommended to implement measures to enhance transparency in tax collection processes to combat tax evasion.