Afghanistan’s taxation system is improving but remains one of the greatest impediments to economic growth and foreign direct investment. Despite sustained efforts of the AACC, the International Stability Operations Association (ISOA) and other trade groups and donor government representatives over the years the issue continues to haunt the National Unity Government (NUG). If problems with the current system could be resolved concretely, this would immediately impact business growth and capital investment (especially in the short term). Taken together with other equally important market-oriented policy reforms this change could help improve national employment and private sector development for decades to come. Below the AACC has laid out the problems and challenges with the current Afghanistan taxation system and we close with specific recommendations on moving forward strategically to solve these issues.