Africa-Press – Angola. The joint opinion and the proposed law amending the Value Added Tax Code (VAT) were approved monday, in a joint meeting, by the deputies of the National Assembly, with 24 votes in favour, seven abstentions and no votes against.
The deputies also approved the Legislative Authorization Bill that authorizes the President of the Republic, as holder of the Executive Power, to legislate on the Legal Regime of Transit Activity, with 34 votes in favour, none against and no abstention.
The deputies also appreciated, discussed and voted on the joint opinion report on the Legislative Authorization Bill to legislate on incentives to be attributed to the Block 20/11 concession area, having been approved with 32 votes in favour, none against and none abstention.
On the occasion, Deputy Esteves Hilário said, given the economic moment the country is going through, it is essential that there are economic measures to mitigate the impact of the economic crisis “and the economic difficulties we are experiencing today”.
Speaking to journalists, he said that the MPLA parliamentary group is available to discuss the proposal made by the holder of the Executive Power, in the sense of reducing the VAT rate, mainly for basic basket products.
He highlighted the influence that VAT has on raising revenue for the State and maintaining the country’s basic expenses.
“…It would not be wise to reduce VAT to zero, in these circumstances, because then we would have problems with the treasury and we would have problems with the State’s ability to resolve essential basic expenses such as paying civil service salaries, keeping the health system functional, therefore it makes no sense today to reduce VAT to zero”, he explained.
The proposal for a law amending the Value Added Tax (VAT) Code, on the initiative of the holder of the Executive Power, goes to the Plenary of the National Assembly on Monday, August 14, in Generalidade, in its 8th Ordinary Plenary Meeting of the 1st Legislative Session of the V Legislature.
In the proposal, adjustments were introduced, among which the reduction to seven percent of the VAT rate on food items hitherto taxed at 14 percent.
The diploma also provides for the broadening of the scope of application of the simplified regime to include exempt operations and eliminate the application of seven percent of Stamp Duty, as well as the clarification of some exemptions referring to medical goods, books, similar operations, special regime customs and those resulting from international agreements.
Other adjustments made to the Value Added Tax (VAT) Code aim to provide greater flexibility, efficiency and fairness to this tax, both for taxpayers, in the process of liquidation, declaration, payment and reimbursement of VAT credits, and for the Administration Tax, within the scope of tax control and inspection.
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