Afghan merchants fear for future amid rise of costs

Afghan merchants fear for future amid rise of costs

KABUL: Merchants in the historic Afghan trading city of Herat fear for their future after being hit by Taleban tax collection and a backlog for goods to clear customs. The country’s third-biggest city is a strategic hub along the ancient Silk Road-with nearby borders to Iran and Turkmenistan-and is a key generator of revenue for the country.

Although the Taleban blame rampant corruption by the previous government for a rise in costs for importers, businessmen in Herat say they face going under if the hardline Islamists do not lower taxes. “I’m feeling really hopeless,” merchant Faghir Ahmad told AFP. Since the Taleban stormed to power in mid-August, food prices have gone up, the cost of fuel has risen and there are fewer opportunities to make money. Afghanistan’s central bank has access to only a fraction of its usual financing, and is cut off from the international banking system and its own foreign currency reserves.

It means cash is in short supply and banks are enforcing a weekly withdrawal limit of $200 per person. “First when the Taleban came, the people were very happy because we saw that security was coming, but unfortunately now the price for everything has gone up and people