|Welch and Jones introduce bipartisan bill to stop Afghanistan from taxing US aid|
|Monday, 07 March 2011 12:43|
Reps. Peter Welch (D-Vt.) and Walter Jones (R-N.C.) on Monday introduced bipartisan legislation to prevent the Afghan government from taxing American companies delivering US aid to Afghanistan.
The Stop Taxing American Assistance to Afghanistan Act (H.R. 936) would bar future assistance to Afghanistan unless US contractors and subcontractors delivering aid are exempt from taxation by the government of Afghanistan. According to the Washington Post, the Afghan government recently sent overdue tax bills to US contractors working in the country.
"It is absurd for the Aghan government to suggest taxing America's effort to rebuild their country," Welch said. "While that may make sense in Hamid Karzai's world, it makes no sense to the American taxpayer. This legislation will make sure America is not taxed on the assistance it provides to Afghanistan."
"It is outrageous for the Karzai government to tax U.S infrastructure spending for the reconstruction of their country," Jones said.
The calls to tax US contractors come despite bilateral agreements that exempt US-based companies from such taxation. In recent months, the Afghan government has warned contractors in the country that failure to pay what it deems overdue tax bills could result in arrest or confiscation of goods.
H.R. 936 was referred to the House Committee on Foreign Affairs.