Angola’s new customs tariff intended to encourage local production

25 February 2014

Angola’s new customs tariffs, due to come into force on 3 March, are intended to encourage local production, the director of the Tariffs and Trade Department of the Angolan National Customs Service, Garcia Afonso said Monday.

At a meeting to explain the new tariffs and clear up any doubts about the process, Garcia Afonso, cited by the Angolan press, said that the new tariffs were intended to create conditions to attract those companies that export most to Angola and turn them into national investors and diversify levels of investment.

He showed concern about the news that was reported after the tariffs were published, that “everything would be worse, and that everything would become more expensive because of the change in customs taxes and that the population would suffer,” and explained that the taxes on most products had actually been left unchanged or had been reduced.

Comparing customs tariffs from 2007 and 2012, of a total of 6,651 items on the current document, 2,942 products are free of tax and 1,150 have had their tax levels reduced to 2 percent compared to 2,576 exempt products and 914 products taxed at 2 percent, of a total of 6,011 items on the 2007 list.

With the new customs tariff the Angolan government expects to increase revenues by over 23 million kwanzas, or 10 percent more than for the 2007 version, due to inspection measures put in place by the tax reform programme.

Garcia Afonso, who noted that the taxes on the basic basket of goods remained unchanged, said that essentially taxes had increased on beauty products, vehicles and other important but non-vital items for most of the population. (macauhub)