Bazaars set up on Afghanistan's borders are avoiding customs tax and damaging local industry, the Afghan Chamber of Commerce and Industries (ACCI) said Sunday.
The border bazaars are normally dominated by traders from the neighbouring country and sell products at low prices that Afghan traders struggle to compete with, according to Azarakhsh Hafezi, head of the ACCI's international relations.
"We don't have sufficient produce to sell in these small bazaars, therefore we do not obtain the benefits," Hafezi said.
In particular, Iranian traders are taking advantage of selling their produce exempt from Afghan taxes – sometimes selling it for 22 percent less than their Afghan counterparts, he added.
The ACCI believes Iran is seeking to increase such border bazaars after losing many customers on the global scale and Afghanistan increased customs tax on imported goods. It also warned that this situation means there will be higher risk of unhealthy competition and smuggling of goods.