Tax department foresees fiscal relief in diamond subsector

  • Diamantes de Angola
Dundo - General Tax Administration (AGT) does not foresee worsening of the tax burden in diamond exploration companies for the economic year 2021, said the director of Special Taxation of AGT, who announced plans to increase contributions to the General Budget through industrial and commercial taxes.

The measure, according to Pedro Marques, aims to allow the State to collect 42 billion Kwanzas from the monthly diamond trade revenues, forecast for the economic year 2021.

The sector is expected to yield AKz 27.9  billion. The State has collected, from January to September, AKz 24.9 billion.

The tax relief, he added, will encourage and stimulate companies to produce and sell a larger volume of diamonds, reduce tax costs and increase billing levels.

According to Pedro Marques, it is possible to achieve this figure, in view of the number of companies they plan to start exploring in 2021, including the Luaxe project, which will be one of the largest diamond mines in the world.

He also pointed to Diamond Development Hub, as a great indicator for the increase in revenues from the diamond subsector.

 “Next year we will advise and help companies on how they can benefit from the various incentives that have been provided for in the mining code, how companies can benefit from reduced tax costs and grace periods in the payment of income tax", he stressed.

Twelve mining projects are in operation in Angola (Calonda, Chitotolo, Lulu, Lunhinga, Cuango, Catoca, Furi, Uari, Yetwene, Luminas, Lunhinga and Somiluana) and four more will soon be operational (Tchiegi, Luaxe, Camute, Mucuanza).

There are 14 projects in prospect, namely Chinguvo, Dala, Gango, Sequege, Tchafua, Quitapazunzo, Cassanguidi, Lacage, Chitamba, Tchissombo, Mualengue, Mussanja, Sachenda and Banje Angola.