Africa-Press – Angola. The process of delivering cards to economic operators for exemption from the price of gasoline should last up to 45 days, from the entry into force of the measure (June 2), with the respective retroactive effects, announced this Tuesday in Luanda, the Secretary of State for Finance and Treasury, Ottoniel do Santos.
Speaking at a meeting with religious leaders, the official assured that the cards continue to be issued and that they should be delivered, with the value from the date of entry into force of the measure.
The new table that sets the price of a liter of gasoline at 300 kwanzas, against the previous 160, not including taxis, motorcycle taxis and small-scale fishing boats, came into force on Friday, 2 June, after being announced by the Executive.
With the withdrawal of the gradual subsidy on the price of gasoline, the State saves 400 billion kwanzas, with a weight of 40 percent in fuel subsidies.
The Government refers that the attribution of subsidies to fuel prices is an economic and social measure, resulting from a combination of fiscal policy and income and price policy, supported by Presidential Decree n.o 206/11, of 29 July , which approves the General Bases for the Organization of the National Price System and by Presidential Decree No. 283/20, of 27 October.
Data collected show that in 2022, the State assumed a total subsidy of Kz 1.98 billion, with diesel being the fuel that represents the greatest weight of this expenditure, worth Kz 1.35 billion, which corresponds to 68.1% of the total, followed by gasoline with a value of Kz 458.78 billion, corresponding to 23.2% of the total.
Until December 2022, market prices stood at 452%, 578%, 202% and 279% above the prices set, respectively for LPG (kitchen gas), Illuminating Oil, Gasoline and Diesel, having generated subsidies at prices of Kz 551 billion, Kz 1.2 billion, and Kz 1.98 billion, respectively in the years 2020, 2021 and 2022, totaling Kz 3.73 billion for the period in question.
Ottoniel do Santos also highlighted that, with the measure, families benefiting from the Kwenda Program (cash transfers), will now receive 11,500 kwanzas, against 8,500 previously.
“The value that the kwenda may have, in the coming years, will be 75 billion kwanzas. This initiative will be complemented with the employment fund, whose function is to work on two fundamental purposes: training and support for entrepreneurship, through micro credit”, he emphasized.
He reinforced that, with the measure, there is room to redirect the subsidy to those who actually need it, because the subsidy had some injustice.
Ottoniel do Santos says that the Government is also considering changes to the Labor Income Tax (IRT) to deal with measures to mitigate the rise in fuel prices.
By the way, the bishop of the Church of Our Lord Jesus Christ in the World (Tocoista), Afonso Nunes, considers it to be a necessary measure, despite the problems caused. In his view, “the way it was applied and the moment or the way the message has been passed on to the citizen created unnecessary noise”.
In his opinion, this meeting with religious leaders should be the first, as a way of recognizing the ability of religious leadership to solve social problems.
On the occasion, the secretary general of the Evangelical Alliance of Angola (AEA), Alexandre Saúl, suggested reviewing the national minimum wage, reducing the Value Added Tax (VAT), reducing the Labor Income Tax (IRT) and the reduction of stamp duty which rose from 1% to 7%.
Alexandre Saúl is also of the opinion that the contributions of the social partners should be requested, before the implementation of the measures.
Clarification to youth leaders unions
During the day, clarification and consultation sessions were held with trade unions and youth leaders on the program to reform fuel subsidies, which culminated in the adjustment of the price of gasoline.
Ottoniel dos Santos reaffirmed the pernicious impact that subsidies had on public accounts, diverting resources that could be channeled to meet other social needs.
The Secretary of State appealed to “the help of associations of taxi drivers and motorcycle taxi drivers to raise the awareness of their members regarding the process, and thus benefit from the support established by the Executive, having informed that 55 thousand are currently licensed, of which 1677 blue and white taxi drivers are licensed. whites and 51,000 motorcycle taxi drivers.
Meeting with traditional authorities in Lunda Sul
In Saurimo, the governor of Lunda Sul province, Daniel Neto, said that the Executive had taken this measure to subsidize fuel, aiming at solutions to improve the quality of life of the population.
The meeting was attended by traditional authorities, religious leaders, motorcycle taxi associations, taxi drivers, youth and society in general, in order to clarify them about the Executive’s measure in subsidizing fuel.
The official said that the withdrawal of the subsidy to the price of gasoline will allow for more investments to be made in different areas that are fundamental for the country’s development.
“Thousands of vulnerable families could benefit, to start income-generating activities in areas such as agriculture, livestock, fishing, handicrafts, culture, rural tourism and the environment”, he said.
He considered it to be a wise measure, where the Executive will have more slack in the resources available and invest in policies to remove the country from the current situation, which is less good.
The participants, on the other hand, guaranteed to convey, to churches and communities, the benefits of withdrawing the gasoline subsidy, where taxis, motorcycle taxi drivers, farmers, fishermen and public transport operators will continue to pay 160 kwanzas per liter of gasoline.
The representative of the Bom Deus church, Afonso Kebão, said that subsidizing the price of gasoline to people and goods transport operators is an assertive measure that will help facilitate the flow of goods from the countryside to the main points of consumption.
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