Identifier
Created
Classification
Origin
09STATE7480
2009-01-28 00:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Secretary of State
Cable title:
DEMARCHE: PRESS AFGHAN GOVERNMENT TO MEET IMF
how-toVZCZCXYZ0000 OO RUEHWEB DE RUEHC #7480 0280011 ZNR UUUUU ZZH O 280003Z JAN 09 FM SECSTATE WASHDC TO RUEHBUL/AMEMBASSY KABUL IMMEDIATE 8554 RHEHNSC/NSC WASHINGTON DC PRIORITY 2482 RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
UNCLAS STATE 007480
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAID ECON EFIN PGOV IMF AF
SUBJECT: DEMARCHE: PRESS AFGHAN GOVERNMENT TO MEET IMF
BENCHMARKS
REF: KABUL 3277
UNCLAS STATE 007480
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAID ECON EFIN PGOV IMF AF
SUBJECT: DEMARCHE: PRESS AFGHAN GOVERNMENT TO MEET IMF
BENCHMARKS
REF: KABUL 3277
1. (SBU) This is an Action Request, see paragraph 2.
2. (SBU) ACTION REQUEST: Upon receipt of this demarche, the
Ambassador is requested to convey the importance of stronger
compliance with Afghanistan,s International Monetary Fund
(IMF) program to President Karzai. The Ambassador should
encourage chiefs of missions at resident embassies in Kabul
that the U.S. government is making this demarche and
encourage them to make joint representations to President
Karzai.
3. (SBU) Suggested Talking Points:
I have been instructed by Washington agencies to stress the
need for stronger compliance with Afghanistan,s IMF program.
The IMF,s program review mission in December documented
serious slippage in revenue collection, particularly in
customs.
Strong compliance with the IMF program, supporting the
Ministry of Finance,s efforts to increase revenue
generation, requires your close personal attention.
An improvement in revenue collection is necessary for
Afghanistan to complete the next review of the IMF program.
This is a prerequisite for Afghanistan to achieve the debt
relief negotiated with Paris Club creditors, including Russia.
It is critical that Afghanistan both demonstrate to the
international community, in the form of a realistic target,
its firm resolve to increase revenues and take timely
concrete steps to improve collection.
Such measures would also strengthen the legitimacy of the
Afghan Government by increasing its available resources and
would provide your government with added resources to spend
on delivering services to the population at a time of growing
pressures on the public budget.
Furthermore, the donor community will be more likely to meet
their commitments expressed at the June Paris Donors
conference if your government demonstrates adherence to the
program.
We have discussed this issue with other donors and have found
broad international agreement that the following actions by
your government are critical to address the revenue shortfall
and remain in compliance with the IMF program:
Encourage Parliament to enact pending tax amendments,
including applying the business receipts tax to imports.
Instruct the Minister of Commerce and Industry to implement
an MOU already agreed between the Finance and Commerce
ministries, enabling Finance to assess and collect customs
duties and taxes owed by the Fuel and Liquid Gas Enterprise.
Instruct your Cabinet to provide the Ministry of Finance with
the support to collect taxes from all taxpayers, regardless
of their political connections.
CLINTON
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAID ECON EFIN PGOV IMF AF
SUBJECT: DEMARCHE: PRESS AFGHAN GOVERNMENT TO MEET IMF
BENCHMARKS
REF: KABUL 3277
1. (SBU) This is an Action Request, see paragraph 2.
2. (SBU) ACTION REQUEST: Upon receipt of this demarche, the
Ambassador is requested to convey the importance of stronger
compliance with Afghanistan,s International Monetary Fund
(IMF) program to President Karzai. The Ambassador should
encourage chiefs of missions at resident embassies in Kabul
that the U.S. government is making this demarche and
encourage them to make joint representations to President
Karzai.
3. (SBU) Suggested Talking Points:
I have been instructed by Washington agencies to stress the
need for stronger compliance with Afghanistan,s IMF program.
The IMF,s program review mission in December documented
serious slippage in revenue collection, particularly in
customs.
Strong compliance with the IMF program, supporting the
Ministry of Finance,s efforts to increase revenue
generation, requires your close personal attention.
An improvement in revenue collection is necessary for
Afghanistan to complete the next review of the IMF program.
This is a prerequisite for Afghanistan to achieve the debt
relief negotiated with Paris Club creditors, including Russia.
It is critical that Afghanistan both demonstrate to the
international community, in the form of a realistic target,
its firm resolve to increase revenues and take timely
concrete steps to improve collection.
Such measures would also strengthen the legitimacy of the
Afghan Government by increasing its available resources and
would provide your government with added resources to spend
on delivering services to the population at a time of growing
pressures on the public budget.
Furthermore, the donor community will be more likely to meet
their commitments expressed at the June Paris Donors
conference if your government demonstrates adherence to the
program.
We have discussed this issue with other donors and have found
broad international agreement that the following actions by
your government are critical to address the revenue shortfall
and remain in compliance with the IMF program:
Encourage Parliament to enact pending tax amendments,
including applying the business receipts tax to imports.
Instruct the Minister of Commerce and Industry to implement
an MOU already agreed between the Finance and Commerce
ministries, enabling Finance to assess and collect customs
duties and taxes owed by the Fuel and Liquid Gas Enterprise.
Instruct your Cabinet to provide the Ministry of Finance with
the support to collect taxes from all taxpayers, regardless
of their political connections.
CLINTON