Africa-Press – Angola. Directors of business and industrial associations in Huíla highlighted today, Tuesday, in Lubango, that the reduction of Value Added Tax (VAT) from 14 to seven percent, on food goods, will influence the drop in prices and return the purchasing power of citizens.
Regarding the Government measure that will come into force in January 2024, the president of the Huíla Agro-Livestock, Commercial and Industrial Association (AAPCIL), Paulo Gaspar, said that “it is welcome” and goes against the aspirations of the class.
He declared that AAPCIL has always defended and asked the Government that it was important to create economic relief measures, to minimize the economic pressure that national citizens are experiencing.
For the businessman, the gradual withdrawal of gasoline subsidies caused inflation and a dizzying rise in the prices of the basic food basket, which is why, just as the procedure was vital, it is also essential to implement measures to alleviate and give some purchasing power citizens’ wages.
He also called for the need for a zero VAT rate for certain foodstuffs, as a way of further reducing the pressure on the household economy.
For the provincial delegate of the Industrial Association of Angola (AIA) in Huíla, Francisco Chocolate, the VAT reduction is “healthy” and promotes balance in the prices of goods and services, which have risen sharply, as a result of the exchange rate depreciation.
The economist stressed that the measure focuses on reducing the prices of basic basket products, which will alleviate the affliction that families experience on a daily basis.
The Value Added Tax was implemented on July 1, 2019, with its entry into force, also, for the first time, with an initial and single rate of 14 percent, within the framework of the broad ongoing Tax Reform .
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.
In addition to the reduction of VAT on food goods, the package of measures to increase national production, tax simplification and improvement of the business environment, also provides for changes in Property Tax, the elimination of Stamp Duty on real estate promotion, as well as on the registration of share capital of companies.
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