ITB for Upgrading of Plum Concrete Surface Streets in Districts 12 & 13 of Kabul city (4 Lots) - Afghanistan

New clarification added: Dear Sir,We would like to request clarification regarding the labor section.The labor rates have been fixed, and the payments are made through the bank. Therefore, we are not able to add any margin or profit to the labor cost.However, we sign the contract based on the total combined amount, and during the annual settlement with the Ministry of Finance, they review the contract and deduct tax based on the total value.According to our calculations, the tax deduction per skilled worker is between 30 to 35 AFN, and for each unskilled worker it is between 18 to 22 AFN. However, only 10 AFN per worker has been allocated to us.This means that we have to cover the remaining costs from our own expenses.Therefore, we kindly request clarification on this issue. Our main request is that the labor administrative cost be increased to properly cover the tax and administrative expenses.We would appreciate your consideration and response.Response: Clarification on two key points regarding upcoming contracts:Firstly, the AFN 10 allocation is specifically designated as a fixed price to cover the contractor's labor administration costs. It is essential to understand that this allocation is not intended for the payment of taxes to any relevant authorities. Secondly, to ensure clarity and facilitate proper tax handling, upcoming contracts will explicitly outline the payment structure and associated tax responsibilities. Specifically, the contract will state that the labor wages component of the total contract amount will be paid directly to the Afghanistan International Bank (AIB), while only the material component will be paid directly to the contractor. Consequently, the contractor will bear sole responsibility for all tax clearance obligations pertaining exclusively to the material component of the contract only, not for the labor wages part that will pay to the AIB.