A man surveys the scene after a blaze in Afghanistan that killed seven people and injured about 60 others. EPA
A man surveys the scene after a blaze in Afghanistan that killed seven people and injured about 60 others. EPA
A man surveys the scene after a blaze in Afghanistan that killed seven people and injured about 60 others. EPA
A man surveys the scene after a blaze in Afghanistan that killed seven people and injured about 60 others. EPA

Afghanistan: fragile economy hobbled by colossal tanker truck inferno


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A colossal blaze at Islam Qala near the border between Afghanistan and Iran engulfed hundreds of oil tanker trucks, killing seven people and injuring about 60 others.

This fire was a result of the recklessness of the officials. The government has no control at the border

It also caused tremendous economic damage.

Some reports suggest the fire was started by an explosion in the parking area of the trade border. It spread to hundreds of other vehicles and was clearly visible on satellite imagery.

Some witnesses told The National that gunfire was the cause of the blaze.

However, because of a lack of emergency centres and resources, officials from either side of the border were unable to contain the blaze quickly, resulting in damage to nearly 1,000 trucks carrying imports to Afghanistan, a member of the Afghanistan Chamber of Commerce and Investment told The National.

Khan Jan Alkozai accompanied a joint task force of businessmen and parliamentarians to investigate the fire. He said the government's mismanagement and widespread corruption was the root cause.

"This fire was a result of the recklessness of the officials. The government has no control at the border. There is no infrastructure and there is a lot of corruption," he said.

The financial costs of the blaze were immediately felt in local markets across the country after a steep increase in the price of fuel and essential commodities.

“I can say with certainty that the price of basic commodities has increased by 25 per cent, particularly fuel prices,” said Mr Alkozai.

He compared the disorganisation of the parking and customs area at the border to Pul-e-Charkhi, a notoriously badly run prison in Afghanistan.

He said there was "a grave for every container" and that such a tragedy was inevitable.

The National observed similar sharp price increases in many parts of Kabul, with the price of petrol reaching 115 Afghan afghanis per litre, or $1.50, from the government-regulated cost of 54 afghanis per litre.

"The gas prices differ in each neighbourhood. This morning the shop outside my house was selling for 75 afghanis per litre, but now it's risen to 95 Afghan afghanis," Ghulam Sakhi, a Kabul resident, told The National on Friday.

He said a relative from another part of the city bought petrol at 110 afghanis per litre.

“How is this allowed? At this rate we won’t be able afford gas for heat. Imagine if it were to snow tomorrow,” he said.

  • In this still image taken from video, smoke rises from fuel tankers at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
    In this still image taken from video, smoke rises from fuel tankers at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
  • Fire and smoke rise from an explosion of a gas tanker in Herat, Afghanistan. Reuters
    Fire and smoke rise from an explosion of a gas tanker in Herat, Afghanistan. Reuters
  • In this still image taken from video, smoke rises from fuel tankers at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
    In this still image taken from video, smoke rises from fuel tankers at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
  • Fire and smoke rise from an explosion in Herat, Afghanistan. Reuters
    Fire and smoke rise from an explosion in Herat, Afghanistan. Reuters
  • Debris fly after an explosion in Herat, Afghanistan. Reuters
    Debris fly after an explosion in Herat, Afghanistan. Reuters
  • Debris fall to the ground after an explosion in Herat, Afghanistan. Reuters
    Debris fall to the ground after an explosion in Herat, Afghanistan. Reuters
  • Iranian firefighters work on a burning tankers carrying fuel at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring multiple people and causing the massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
    Iranian firefighters work on a burning tankers carrying fuel at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring multiple people and causing the massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
  • Iranian firefighters work on a burning tanker carrying fuel at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring multiple people and causing the massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
    Iranian firefighters work on a burning tanker carrying fuel at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded Saturday at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring multiple people and causing the massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
  • Fuel tankers and trucks are parked on the road at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
    Fuel tankers and trucks are parked on the road at the Islam Qala border with Iran, in Herat Province, west of Kabul, Afghanistan. A fuel tanker exploded at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
  • Afghan border police stand guard at the Islam Qala border with Iran, in Herat Province, western of Kabul, Afghanistan. A fuel tanker exploded at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP
    Afghan border police stand guard at the Islam Qala border with Iran, in Herat Province, western of Kabul, Afghanistan. A fuel tanker exploded at the Islam Qala crossing in Afghanistan's western Herat province on the Iranian border, injuring at least seven people and causing a massive fire that consumed more than 500 trucks carrying natural gas and fuel, according to Afghan officials and Iranian state media. AP

Closer to the site of the blaze, in Herat city, prices of essential commodities, most of which are imported from Iran, have increased sharply.

"Everything that is imported from Iran got expensive," Mohammad Usman, a 37-year-old shopkeeper from the city told The National.

“We have also been told that nothing will be imported from Iran for another 15 days. Things will get even more expensive.

“Everything is a lot more expensive now and poor people like us will suffer.”

Mr Usman said he had so far resisted the urge to increase his prices but would be forced to if the government was unable to provide support.

Mr Alkozai, speaking on behalf of affected businesses, urged the government to speed up reforms.

“Everyone is badly affected, but it’s harder for small businesses," he said.

"I spoke to a fresh fruit and vegetable business owner and he told me he had borrowed $50,000 to run this business and now everything had gone up in flames. Unlike bigger businesses who might be able to bounce back, this man was ruined."

The extent of the damage caused by the fire at Islam Qala in Afghanistan's western Herat province was clearly visible on satellite imagery. Maxar Technologies
The extent of the damage caused by the fire at Islam Qala in Afghanistan's western Herat province was clearly visible on satellite imagery. Maxar Technologies

The government began an investigation into the fire to determine the extent of the damage, under the aegis of Vice President Amrullah Saleh.

"Officials from the Ministry of Finance, Industry and Commerce have presented a plan to rebuild Islam Qala customs border," the presidential palace said on Wednesday.

“It will expand to include a new customs area in the border areas of Zinda Jan or Injil districts”.

Second Vice President Sarwar Danesh said the government did not have the capacity to address such emergencies and called for a new civil safety law to be drafted.

A special donation account will be created to help compensate for the damage and provide firefighting services for Islam Qala customs, the presidential office said.

But Mr Alkozai said it was not a sufficient response.

“The president says that he has to beg for donations from the international community to support the country," he said.

"I call him to not beg but rather focus on protecting the wealth we already have in our pockets in the form of local businesses."

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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

The Details

Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5 

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Scoreline

Syria 1-1 Australia

Syria Al Somah 85'

Australia Kruse 40'

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)