Taliban Are Megarich – Here’s Where They Get the Money
The Taliban militants of Afghanistan have grown richer and more powerful since their fundamentalist Islamic regime was toppled by U.S. forces in 2001.
In the fiscal year that ended in March 2020, the Taliban reportedly brought in $1.6 billion, according to Mullah Yaqoob, son of the late Taliban spiritual leader Mullah Mohammad Omar, who revealed the Taliban’s income sources in a confidential report commissioned by NATO and later obtained by Radio Free Europe/Radio Liberty.
In comparison, the Afghan government brought in $5.55 billion during the same period. The government is now in peace talks with the Taliban, seeking to end their 19-year insurgency.
I study the Taliban’s finances as an economic policy analyst at the Center for Afghanistan Studies. Here’s where their money comes from.
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Drugs – $416 million
Afghanistan accounted for approximately 84 percent of global opium production over the past five years, according to the United Nation’s World Drug Report 2020.
Much of those illicit drug profits go to the Taliban, which manage opium in areas under their control. The group imposes a 10 percent tax on every link in the drug production chain, according to a 2008 report from the Afghanistan Research and Evaluation Unit, an independent research organization in Kabul. That includes the Afghan farmers who cultivate poppy, the main ingredient in opium, the labs that convert it into a drug and the traders who move the final product out of country.
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Mining – $400 Million to $464 Million
Mining iron ore, marble, copper, gold, zinc and other metals and rare-earth minerals in mountainous Afghanistan is an increasingly lucrative business for the Taliban. Both small-scale mineral-extraction operations and big Afghan mining companies pay Taliban militants to allow them to keep their businesses running. Those who don’t pay have faced death threats.
According to the Taliban’s Stones and Mines Commission, or Da Dabaro Comisyoon, the group earns $400 million a year from mining. NATO estimates that figure higher, at $464 million – up from just $35 million in 2016.
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Extortion & Taxes – $160 Million
Like a government, the Taliban tax people and industries in the growing swath of Afghanistan under their control. They even issue official receipts of tax payment.
“Taxed” industries include mining operations, media, telecommunications and development projects funded by international aid. Drivers are also charged for using highways in Taliban-controlled regions, and shopkeepers pay the Taliban for the right to do business.
The group also imposes a traditional Islamic form of taxation called “ushr” – which is a 10 percent tax on a farmer’s harvest – and “zakat,” a 2.5 percent wealth tax.
According to Mullah Yaqoob, tax revenues – which may also be considered extortion – bring in around $160 million annually.
Since some of those taxed are poppy growers, there could be some financial overlap between tax revenue and drug revenue.
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Charitable Donations – $240 million
The Taliban receive covert financial contributions from private donors and international institutions across the globe.
Many Taliban donations are from charities and private trusts located in Persian Gulf countries, a region historically sympathetic to the group’s religious insurgency. Those donations add up to about $150 million to $200 million each year, according to the Afghanistan Center for Research and Policy Studies. These charities are on the U.S. Treasurey Department’s list of groups that finance terrorism.
Private citizens from Saudi Arabia, Pakistan, Iran and some Persian Gulf nations also help finance the Taliban, contributing another $60 million annually to the Taliban-affiliated Haqqani Network, according to American counterterrorism agencies.
https://consortiumnews.com/2020/12/10/taliban-are-megarich-heres-where-they-get-the-money/