UK Foreign Secretary Liz Truss announced on Thursday an extra £97 million ($130m) of funding for humanitarian assistance in Afghanistan. The emergency aid will be used to provide life-saving food and emergency health support for over 2.7m people as fears mount the country is facing a humanitarian catastrophe. It brings the UK’s aid commitment to Afghanistan up to £286m this financial year, following allocations made in September, October and December last year.
The relief comes amid a worsening crisis in Afghanistan, which the World Food Programme has said could leave 23m people, more than half the population, facing acute hunger this winter. Earlier this month the UN launched a $4.4 billion aid appeal for Afghanistan, its biggest such fundraising effort, as fears persist that aid flows could bolster Taliban hardliners.
UK funds will be primarily channelled through the UN Afghanistan Humanitarian Fund, WFP and the UN children’s fund, said the Foreign, Commonwealth and Development Office (FCDO). The aid will not go directly to the Taliban.
“The UK continues to provide vital humanitarian assistance in Afghanistan. We have doubled UK aid this year to save lives, protect women and girls and support stability in the region. The funds announced today will mean essential food, shelter and health supplies will reach those who are most in need,” said Foreign Secretary Liz Truss.
The FCDO said the aid would go to sustaining more than 60 hospitals and ensuring 4.47m people receive emergency food assistance through the World Food Programme. It will also help to provide 6.1m people with emergency health, water, protection, shelter, food, and education support through the UN Afghanistan Humanitarian Fund.
Earlier this week, the UK Prime Minister’s Special Representative for Afghanistan, Nigel Casey and other government officials joined a meeting of US and European Special Representatives for Afghanistan in Oslo to discuss economic and humanitarian issues, security and counter-terrorism, and human rights. British officials said they made clear to the Taliban delegation their “serious concerns” about human rights, particularly in relation to those of women and girls.
Norwegian state secretary Henrik Thune said there were a list of “tangible demands” on the table in talks with the Taliban over humanitarian aid and the fate of billions of dollars in frozen funds.
The demands are expected to include a call for delivering humanitarian aid directly to the Afghan people, and raise the plight of two women activists who went missing in Kabul last week after taking part in a demonstration. The Taliban have denied responsibility.
As well as providing food, shelter and healthcare, the FCDO said, the UK’s financial aid would also be used to help survivors of gender-based violence and to fund essential child protection services. Aid agencies will also give priority to those most at risk, including households headed by women and people with disabilities, they said.
Earlier this week, the UK government passed legislation that would allow a humanitarian exception from UN sanctions meaning aid agencies can operate without fear of undue legal repercussions. Previously, charities and humanitarian agencies trying to bring aid into Afghanistan faced legal difficulties as a result of UN sanctions against senior Taliban leaders.
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Super lightweight:
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Super lightweight:
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Bantamweight:
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Lightweight:
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Welterweight:
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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
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