The Taliban's supreme leader on Sunday ordered a ban on poppy cultivation in Afghanistan, with a warning that the hardline government would crack down on farmers planting the crop.
Afghanistan is the world's biggest producer of poppies, the source of sap that is refined into heroin, and its production and exports have boomed in recent years.
"All Afghans are informed that from now on cultivation of poppy has been strictly prohibited across the country," said a decree issued by Supreme Leader Hibatullah Akhundzada.
The decree was read out by government spokesman Zabihullah Mujahid at a gathering of reporters, foreign diplomats and Taliban officials.
"If anyone violates the decree the crop will be destroyed immediately and the violator will be treated according to the Sharia," it said.
The order said the production, use or transportation of other narcotics was also banned.
It is not the first time the Taliban have outlawed the poppy trade. Production was banned in 2000 before the group was overthrown by US-led forces after the 9/11 attacks.
During their 20-year insurgency against foreign forces, the Taliban heavily taxed farmers cultivating the crop in areas under their control.
It became a vital resource for the group to generate funds.
The United States and Nato forces tried to curb poppy cultivation during their two decades in Afghanistan by paying farmers to grow alternative crops such as wheat or saffron.
But their attempts were thwarted by the Taliban who controlled the main poppy-growing regions and derived hundreds of millions of dollars from the trade, experts say.
Deputy Prime Minister Abdul Salam Hanafi rejected claims that the Taliban helped to fuel poppy cultivation during their insurgency.
"How come it was exported all over the world when they [US-led forces] had full control over Afghanistan?" Mr Hanafi said on Sunday.
Afghan media reports say production increased in two southern provinces, Kandahar and Helmand, since the Taliban seized power in August, although data is not available.
Afghanistan has a near monopoly on opium and heroin, accounting for 80 to 90 per cent of global output, the United Nations Office on Drugs and Crime has suggested.
The area under poppy cultivation hit a record high in 2017 and has averaged about 250,000 hectares in recent years, roughly four times the level of the mid-1990s, UN figures indicate.
A farmer in Helmand said poppy prices had already more than doubled in recent weeks after rumours that the Taliban would ban cultivation. But he said he needed to grow poppies to support his family.
"Other crops are just not profitable," he told Reuters, speaking on condition of anonymity.
Watch: Abu Dhabi Police seize 1.5 tonnes of heroin hidden in pet food
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net
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