The explosion took place at around 01:00 pm when an ambulance was detonated between two checkpoints outside the old Interior Ministry building close to Sedarat Square in the capital Kabul.
Ismayel Kawosi, the Public Health Ministry Spokesman confirmed the casualty toll and said that the wounded people have been transferred to different hospitals in the city.
Most of the victims of the attack are civilians, the Interior Ministry Deputy Spokesman said, adding that four people have been arrested in connection to the incident.
The Taliban claimed responsibility for the attack on social media.
The attack comes days after at least 30 people including 14 foreigners were killed in the attack on the Intercontinental Hotel in Kabul, followed by a suicide bombing on the office of Save The Children Organisation in Jalalabad City of eastern Nangarhar which left at least six people dead.