Thu, 21 Feb 2019 18:49 - Updated Thu, 21 Feb 2019 18:49
Parliament passes introduction of VAT in Angola
Luanda - The National Assembly this Thursday, in a global final vote, introduced the Code of Value Added Tax (VAT) in the country, which should boost the collection of public revenues related to consumption.
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MPs approve introduction of VAT in the country
Photo: Clemente dos Santos
The document was approved with 166 votes in favor, none against and one abstention, during the 4th Ordinary Plenary Meeting, chaired by the speaker of this sovereign body, Fernando da Piedade Dias dos Santos.
The VAT rate is 14%, a percentage below the average for SADC countries.
With the approval of the document, the existing model in the field of taxation of the expenses, to the date based on the consumption tax, is widened the base of the tax and allow the State a greater collection of revenues.
The above mentioned Law in is aligned with the tax reform, the Executive National Development Plan 2018/2022, commitments to international organizations such as the World Bank and the International Monetary Fund (IMF) and the SADC regional integration strategy.
VAT will cover only large taxpayers in the first instance and should come into force in July this year.
Other companies that cannot join in the first phase will be subject to a two-year transitional regime, and micro-enterprises with a threshold equivalent to USD 250,000 will be able to afford 50% of the VAT rate.
The plenary meeting of Thursday approved, definitively, the proposals of the Law of Amendment to the Income Tax Code (IRT) and of the Amendment to the Industrial Tax Code, with the abstention of the CASA-CE Coalition.
The proposals of Laws on the Organization, Exercise and Operation of the Activities of Fair Trade, Fair and Market and Base of Privatizations were also approved definitively by the deputies, with votes against UNITA.
In its explanation of vote, UNITA (largest opposition party) claims that the country was affected by a deep economic and social crisis, accompanied by a lack of industrial investment and the supply of new jobs to absorb the thousands of citizens who survive from informal trade .
It understands that, with the approval of this Law, "citizens will be subject to the arbitrariness of local authorities, who may prohibit street selling throughout the municipality."
Regarding the privatization diploma, it stresses the importance of creating concrete mechanisms and incentives for the true entrepreneurship to boost the non-oil sector of the national economy.
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