Informal trade in Angola accounts for 80% of total trade

6 October 2017

Informal or parallel trade in Angola accounts to 80% of the total, “a fact that makes the growth and development of the Angolan economy precarious and vulnerable,” according to experts linked to the programme for transferring all informal commercial activity to official channels.

The programme’s technicians have reported that formal activity has very close ties to the informal sector, with the official sector complaining of unfair competition from informal traders that have a market share of around 80%.

The programme, launched on 11 September in the main markets of the Angolan capital, in the first eight days and in “Km 30 Market” in Viana alone, recorded 4,600 economic agents operating outside the tax system, who sell various goods from market stalls.

State newspaper Jornal de Angola reported figures provided by the market’s managers showing that there are 455 other contributors to the wholesale market with retail permits, which have been identified by technicians from the ministries of Finance, Commerce, Interior, Fisheries, Agriculture and Health.

The newspaper also said that between 11 and 22 September in that market and surrounding areas it was possible to recover, from just 56 notifications issued, tax debts for 2013 to 2016 estimated at 32.8 million kwanzas, related to industrial taxes, stamp duty and property tax.

The formalisation of the economy is seen as one of the main objectives of the Angolan government, as part of a programme to promote its diversification, broaden the tax base and reduce imports. (macauhub)