Luanda - The Angolan State fails to raise 63.9 billion kwanzas due to the reduction of the Value Added Tax (VAT) in the main products of wide consumption, from 14 to 5%, a measure in force since January this year.
This fact was revealed Thursday, in Luanda, by the director of the VAT service of the General Tax Administration (AGT), João Love, on the sidelines of the 'Outlook Fiscal' conference, promoted by consultant Deloitte.
At the time, the source recalled that the reduction of VAT and, consequently, the abdication of revenue collection results from the analysis by the State in the current socio-economic condition of companies and families, marked with the low purchasing power of essential goods to food.
Among the wide consumption food products that should be taxed 5% of VAT, stand out meat and offal of the beef, swine, sheep and goat, poultry, milk, yogurt and butter.
The package also includes eggs, vegetables or edible vegetables, fruits, tea, cereals, corn and wheat flour, food oil, sugar, food pasta, bread and other pastry, water and others.
In addition to relieving the cost of living of the population, the VAT director should that this also encourages the formalization of the national economy, with the insertion of new companies in the formal circuit, which may significantly cover or compensate, the current loss.
During the conference on the main economic changes in the country, João Love also pointed out from 2 to 1% of the VAT rate in products and a reduction from 7% to 1% seal tax for companies that, until December 31 of 2023, they had to pay this tax, in the province of Cabinda, as other advantages of the legal Act approved by the National Assembly.
For its part, the chairman of the board of the AGT Administration, José Leiria, recalled that the rate of Angolan VAT is one of the lowest in the SADC region, which is above 5%. Angola also practices 25% in the income tax rate, against the region's 26.6% average.
At the AGT Tax Study Center, in partnership with the Ministry of Finance, the manager said they are working on the design of singular income tax, a strategy to be presented later to the economic team and be taken to public consultation.
He said that the Angolan tax system is under construction, also needing consensus necessary to make it more balanced and adjusted to the reality of the country.
In addition, it also mentioned that AGT wants to work to be able to international tax initiatives.
Delloite's tax consulting area, on the other hand, Renato Carreira, highlighted the single tax reform as a process that will help simplify the payment of companies, which will pay on their profits.
The 'Fiscal Outlook' conference, which was attended by businesspeople, experts from different fields and public managers, aimed to promote debate on the implementation of ongoing socio-economic measures in Angola. ML/QCB/DOJ
