Africa-Press – Angola. The National Assembly (AN) discusses and votes, next Thursday (21), three requests for legislative authorization from the President of the Republic on the VAT regions applicable in the oil and gas sectors.
This is the Value Added Tax (VAT) regime applicable to Petroleum Investing Companies in the Concession Area of the new Gas Consortium – NCG and the tax incentives applicable to the concession areas of blocks 49 and 50, located in ultra-deep waters. depths of the Lower Congo Basin.
The information was provided this Friday, in Luanda, by the first secretary of the National Assembly Board, Manuel Lopes Dembo, at the end of the Conference of Parliamentary Leaders, which defined the agenda of the Plenary Meeting to take place on the 21st and 22nd of the current month.
The implementation of the new Gas Consortium (NCG) is subject to the verification of certain suspensive conditions, including the approval of a special differentiated tax regime.
According to the justification report, the approval of a differentiated fiscal framework is fundamental, as the implementation of the NCG Project, based on a risky service contract, has a high cost that depends on the existence of a legal and fiscal framework that provides the necessary legal certainty and economic stability for the project.
The approval of this new legal framework will allow the State to raise revenue from the payment of direct taxes applicable to all participants in the NCG and ALNG project chain, promoting the development of the country’s non-associated gas reserves.
Blocks 49 and 50 appear to be quite challenging projects, as they involve exploration in ultra-deep waters, which represents technical and operational complexity and a high research risk, characterized by complex installations and geology, which can be extend below the saline formations.
The background report highlights the need to implement cutting-edge technology for drilling and production, the lack of facilities (platforms) and/or oil blocks in production in adjacent areas and associated financial requirements.
The Legislative Authorization intends, based on the terms of the current contract, that the projects promote new discoveries, increase oil production, mitigate the reduction in oil reserves, indirect socioeconomic benefits and increase the direct national workforce and indirect.
Some oil fields from the Angola LNG project, approved in 2007, were transferred to the new Gas-NCG Consortium.
The natural gas exploration process in Angola began in 2007, considered a new way of collecting revenue.
For More News And Analysis About Angola Follow Africa-Press
