Africa-Press – Angola. The National Assembly approved, this Thursday, in general terms, the proposed law approving the new Personal Income Tax Code (IRPS), with 109 votes in favor, none against, and 98 abstentions.
The proposal, approved at the 7th Ordinary Plenary Meeting of the 4th Session of the V Legislature and which will be further developed in detail, aims to change the taxation model from a single-entry basis to a unitary model for personal income, as well as broaden the tax base and increase tax revenue.
It also aims to define how to ensure the interconnectivity of the system for determining taxable income and the elimination of legal and economic double taxation. With this system, it is proposed that taxpayers be able to deduct expenses for health, education, transportation, and food. Grouped into five categories, the legislation will promote more equitable taxation aligned with each citizen’s ability to pay.
In its statement of vote, the UNITA parliamentary group argued that the proposal “contrasts with the reality of public finances.”
According to MP Faustino Mumbica, essentially, the legislation only simplifies the payment procedure and maintains taxation on various incomes of the same taxpayer, constituting, in his view, a tax burden. He added that his party intends to deepen the debate on the specifics, clarify misunderstandings, and contribute to an efficient public finance system.
In turn, MP Kilamba Van-Dúnem, from the MPLA parliamentary group, stated that the initiative reflects the State’s commitment to the implementation of the structural reform of the Angolan tax system. He argued that it is aligned with international best practices and has better coordination between different income categories.
He said that, during the specialized discussion, the MPLA intends to suggest measures so that citizens with income equal to or less than 150,000 kwanzas are not required to submit an annual income tax return.
