Africa-Press – Angola. Specialists in Economic Sciences in the province of Moxico considered, this Monday, in Luena, that the reduction of the Value Added Tax (VAT) on food goods, announced by the Executive, will alleviate the financial “effort” of families.
Regarding this measure by the Angolan Government, which will come into force from January 2024, economist Domingos Sete said that this decision could, in the short term, allow the reduction of the cost of living for families and consequently reduce the social tension.
According to the academic, author of the scientific work entitled “Foreign investment in Angola, fiscal aspects”, in addition to increasing families’ ability to purchase goods, the measure will stimulate and boost the business sector and economic growth in the country, with the attraction of more investors.
This idea was supported by the president of the Chamber of Commerce and Industry of Moxico, Agrione Manuel, understanding that the reduction in the VAT rate will encourage the acquisition of more goods by the business class, due to the increase in the purchasing power of families.
“Judging by the country’s current financial situation, it was an assertive measure”, considered the businessman.
The specialist in Tax Law, Alfredo Yava, reiterated that the current applied rate of 14 percent is excessive and inappropriate for the socio-economic reality of the country.
Despite recognizing the impact that it will have on families, after its reduction to 7%, the academic suggests the application of different VAT rates in the country, varying according to the circumstances of each region and the importance of the goods and services to be acquired.
VAT was implemented on July 1, 2019, with an initial and single rate of 14 percent also coming into force for the first time, as part of the comprehensive Tax Reform underway.
The VAT Code provided for a single rate of 14% for all imports of goods and for all large taxpayers with income in excess of 15 million kwanzas, as well as large public companies and banking financial institutions.
Recently, the Minister of State for Economic Coordination, José de Lima Massano, speaking at a press conference after the meeting of the Economic Commission of the Council of Ministers, made it known that there are other measures to increase national production, such as financial support for production, tax simplification and improvement of the business environment.
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