The draft bill on Value Added Tax Code (VAT-IVA), which will have a single rate of 14% and come into force in July, was generally approved by the Angolan parliament on Wednesday, according to official information.
The Minister of Finance, Archer Mangueira, in presenting the government proposal said the introduction of VAT (known as IVA in Portuguese) in Angola aims to increase justice and neutrality in the taxation of consumption, in order to adapt the taxation of expenditure to the new economic and social reality of the country, as well as to promote the collection of public revenues, to replace Consumer Tax and adjust Stamp Duty.
The introduction of VAT is also intended to widen the tax base, attract investments, as well as to establish an internationally comparable tax environment in Angola and to prevent tax evasion and fraud and the gradual inclusion of the informal economy.
At the outset, the minister said, VAT will cover large taxpayers, noting that other companies can choose to join in at this stage if they have organised accounts and appropriate IT conditions.
The finance minister gave assurances that the conditions for the introduction of VAT in July have been established, following preparatory work in the last two years. (macauhub)