Government of Angola prepares to increase Consumer Tax

11 September 2015

The government of Angola will increase consumer tax on some products, especially luxury goods and oil derivatives, under a legislative authorisation granted by the National Assembly to review the rates in currently in force.

The document, which gives the President, as the holder of executive power, 90 days to legislate on the subject, says that in addition to allowing a review of the rates in force it is, “intended to introduce greater justice and equity in terms of tax.”

The Consumer Tax is levied on goods produced or imported in Angola, with an overall rate of 10 percent, but that can vary between 2 percent and 30 percent, depending on the nature of the good or service.

Since the end of 2014 Angola has been facing an economic and financial crisis due to the fall in the international price of oil, which has halved tax revenues from oil exports.

The document, approved by the Angolan parliament, adds that the government should take into account a taxation model “that introduces greater progressiveness to charges for surplus goods, alcohol and luxury goods, protecting the basic necessities and promoting a reduction of goods harmful to health.”

Oil derivatives are not currently taxed, while water and energy services are charged at a rate of 5 percent, as are telecommunications, among other services. (macauhub/AO)