Foreign exchange transfers are now taxed in Angola

26 February 2015

The governor of the National Bank of Angola, José Pedro de Morais, confirmed Wednesday in Luanda the government’s intention to tax the income generated in the country that is “almost entirely” sent abroad.

José Pedro de Morais Júnior said that “current invisibles” such as currency transfers, had grown exponentially over the past two years, becoming the largest contributor to the 19 percent current account deficit for 2015.

The governor was responding to members of parliament on the “special tax” to be applied to foreign exchange operations included in the proposed State Budget (OGE) amendment for 2015, approved Wednesday, by the National Assembly.

The governor said the move aims to reduce the pressure on foreign reserves and create additional revenue for basic consumption of the population.

The Finance Minister, Armando Manuel said at the same session that a new draft law intended to increase the tax on the import of luxury goods.

Without giving further details, the minister said that the new law includes measures to protect domestic production, at a time when the government plans to cut a third of all public expenditure due to the crisis caused by the fall in oil prices. (macauhub/AO)