The Angolan parliament has approved in a final global vote the introduction of the Value Added Tax Code (VAT/IVA) in the country, which is expected to boost tax collection from consumption, the local press reported.
The document was approved with 166 votes in favour, none against and one abstention, during the 4th Ordinary Plenary Meeting, chaired by the parliamentary president, Fernando da Piedade Dias dos Santos.
The approval of the document changes the existing model in consumer tax and extends the tax base, which will allow the State to collect more tax.
The proposed Value Added Tax Law, which will apply a single rate of 14% and will come into force in July, was generally approved by the Angolan Parliament last January.
The Minister of Finance, Archer Mangueira, on 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.
VAT will cover only large taxpayers in the first instance, leaving companies unable to join subject to a two-year transitional regime, with micro-enterprises charging 50% of the VAT rate up to a threshold equivalent to US$250,000. (macauhub)