KABUL, Feb 4: Afghanistan's cash-strapped government said Wednesday it has streamlined import tariffs to drum up revenues, stifle corruption and revive its historic role as a Central Asian trade hub.

Starting March 21, imports currently divided into 120 categories under 40-year-old laws will be split into just six and taxed at rates of between 2.5 per cent and 16 per cent.

"It's the simplest tariff in the region," Finance Minister Ashraf Ghani said.

The streamlined customs regime is the latest in a series of economic reforms supposed to help wean the impoverished country off international handouts as it recovers from more than two decades of war.

The central government is trying to expand its weak influence in the countryside where faction leaders often hold sway, some with the help of private armies.

Having pressured provincial governors to hand over more customs revenue, Ghani has forecast government revenue of $200 million this fiscal year.

Kabul is still dependent on foreign donors to make up the shortfall in its $550 million operating budget. But Ghani said he was confident the new tariffs would boost future returns.

"I think you will see a major change in terms of improvement," he told reporters.

The new system also "takes the discretion away from customs officials," Ghani said - reducing opportunities for officials to overcharge or demand payment for cutting through bewildering paperwork.

The government is eager to boost trade with neighbouring Pakistan and Iran as well as transit shipments, reviving the ancient Silk Road that once linked Central Asia to the Persian Gulf. Official trade with Pakistan in 2002 was $580 million.

The government introduced a new currency in October 2002, and last year began issuing traders in Kabul new 10-digit tax identification numbers to improve tax collection.

Officials also are lobbying other nations to waive tariffs on traditional Afghan goods such as dried fruits and textiles to help boost exports - but transit trade may offer more immediate returns.-APP