Angola should “rectify” excessive import tariffs, WTO says

12 October 2015

Angola should “rectify cases where customs duties and other taxes exceed the average level” of 10.9 percent, said the World Trade Organisation (WTO), which offered to provide “technical assistance” to help the Angolan authorities.

“WTO members noted that Angola has introduced a number of measures to replace imports” and said that “the new customs tariff was significantly raised, from 2 percent to 50 percent, with a simple average of 10.9 percent, an increase compared to 7.4 percent in 2005,” according to a recently published document.

The document presents the conclusions of the two-day meeting and notes “the members called for Angola to “rectify the cases where customs duties and other taxes exceed the average levels” of 10.9 percent, and several members “invited Angola to clarify the state of the law that defines import quotas, which has not yet been put into practice.”

In the Policy Analysis of Angola by WTO members, the second since 2006, “the members suggested to Angola to reduce production costs through lower import tariffs and facilitate trade to enhance competitiveness and promote local production.”

The new Angolan customs tariff generally increases taxes on imported products that may, according to the government, be produced in the country, thus encouraging the expansion of local production and develop the economy, but has been criticised for, in some cases, not considering its repercussions, particularly a predictable rise in prices and the inability of various sectors of the economy to replace imports. (macauhub/AO)