Africa-Press – Angola. The Minister of Finance, Veras Daves, pointed out, this Monday, to a continuous study on the possibility of revising the Income Tax (IRT), despite not having been recommended by the deputies of the National Assembly (AN) .
Although it has been discussed in the specialty, the IRT topic is not included in the recommendations of the Joint Opinion Report made to the Executive, after the 2023 General State Budget was approved, with 124 votes in favor, 86 against and no abstention.
Among the recommendations, in terms of taxes, is only the proposal to reduce the Value Added Tax (VAT) from 7% to 5%, for the entire productive sector.
By the way, Vera Daves made it clear that every tax reduction has an impact on revenue, and by reducing revenue you also have less money to spend, which forces you to make choices for expenses.
In the case of VAT, he said that they will study the possibility of the recommended reduction, see the impacts in order to, in the 2024 OGE, show the results of the studies carried out and justify the reason for accepting or rejecting the proposal presented by the deputies.
As for the IRT, discussed in the OGE 2023 specialty, Vera Daves reiterated openness to its discussion, revisiting models and presenting her impact study.
“We will do this continuously to ensure that the best balance is found between the revenue we intend to raise and the expenses we intend to incur”, advanced the Minister of Finance, making it clear that she is listening to society’s concerns.
When it is time to implement a review of the IRT, the Ministry of Finance will also pronounce itself and justify why, a process that, according to the minister, will be done transparently and with the best technical arguments possible.
The current IRT income table is made up of 13 scales, with rates ranging from 10% to 25%, in its application the highest wages with greater discounts and, in turn, lowest wages exempt from this tax.
The IRT Code segments earnings from work into three tax groups, with group A referring to remuneration paid by the employer to employees, including civil servants.
Group B aggregates the remuneration paid to self-employed workers, as well as the earnings of holders of management and administration positions or corporate bodies of companies.
Group C, on the other hand, includes all income received for carrying out industrial and commercial activities, which are presumed to be all included in the minimum profits table in force.
For More News And Analysis About Angola Follow Africa-Press
