Luanda - The Economic Commission of the Cabinet Council analyzed Thursday the reduction of the rate of taxes and customs duties for northern Cabinda Province, as part of the measures to improve business environment in that region of Angola.
The Memorandum on Improvement of the Business Environment for Cabinda defines five areas in which it is expected improvements in doing business, with proposal of the reduction of business (company) tax rates for the agricultural sector from 10 percent to 3 percent as long as the activity takes place in Cabinda territory.
According to the minister of Economy and Planning, Mário Caetano, the proposal goes beyond the tax benefits of the Free Trade Zone, which are 8 percent.
Speaking to the press on the fringes of the 6th Ordinary Session of the Council of Ministers, the minister said the proposals were made, following studies carried out with local government and businesspeople of the region.
Another proposal is the reduction of the tax for factories installed in the province of Cabinda from 25% to 10%, a decrease equivalent to the agricultural tax rate applied at the level of the country.
The document also suggests the reduction of the tax rate on distribution of company dividends from 10% to 5%, only for companies that develop projects in Cabinda.
The value added tax rate on import and internal acquisition of foodstuffs is expected to go from two percent to one percent.
A proposal has also been made for the reduction of the tax rate on leasing, property owning and the transmission of real estate.
The memorandum also foresees the maintenance of the Customs duties of 2%, with the enlargement of the list of goods, including diverse merchandise such as beverages, vehicles, boats, and aircrafts.
These rates will only apply to taxpayers who are local (Cabinda) tax residents, since they are for "exclusive" consumption and circulation in Cabinda.
"These are the proposals for improvements in the customs and tax regime that we would like to see applied in the province of Cabinda", the minister clarified.
According to Mário Caetano, the intention is to create a greater attractiveness for foreign direct investment.
The Decree on the legislative authorization for the head of the Executive branch to legislate on the matter has been submitted to the National Assembly.
The proposal to create the Free Trade Zone of the Port of Caio, in Cabinda, where the areas and infrastructures are already built and territory delimited, was another topic on the meeting's agenda.
