Value Added Tax (IVA) will replace the Consumer Tax in Angola in 2019, the coordinator of the Technical Group for the Implementation of IVA, Adilson Sequeira, said according to a report published on the website of the Angolan Ministry of Finance.
“The introduction of IVA is the result of a set of short-term actions assigned to the Ministry of Finance, resulting from alignment with the 2018/2022 National Development Plan, as a guiding tool for the country’s economic and social management,” he said.
Sequeira added that IVA, which will prevent double taxation resulting from the application of the consumer tax, “a reality in many countries that Angola intends to avoid,” will have two schemes for its application.
“The aim is to maintain the system of non-subjection of companies that are below a certain level, and to have the general regime as mandatory for taxpayers registered in the Tax Office of Large Taxpayers, and for that purpose must keep to the transitional period of two years running until 2020,” he explained.
Rita Lafera, a representative of the International Monetary Fund, highlighted the benefits of other tax systems, such as those of Portugal, Cabo Verde (Cape Verde) and Mozambique.
The draft bill and its respective Code are a further step towards broadening the tax base, reducing fraud and tax evasion, increasing non-oil tax revenue and, above all, will ensure greater tax justice, the Angolan Ministry of Finance statement said. (macauhub)