The Parliament of Angola, known as the National Assembly, which is due on Wednesday to start discussing proposals for a review of three diplomas to structure the tax system, with a view to simplifying procedures, facilitating the business climate and improving the collection of revenue, said the Ministry of Finance.
The statement also said the government had submitted a change to the Industrial Tax Code to parliament, which essentially reduces the tax burden by reducing the Industrial Tax rate to 25%, adapting it to the level practiced in the Southern African region, where the average corporate taxation rate is 27%.
The Ministry of Finance recognises that this measure will entail a loss of tax revenue for the State, but will allow companies to improve their finances in order to reinvest their capital, thus creating more jobs and consequently increasing consumption.
The statement also noted the reduction of the rate of the Agricultural and related sectors, and this proposal will reduce the current 15% rate to 10%, as a way of promoting this sector, thus aligning taxation policy with the Angolan Government’s strategy to promote and increase domestic production.
The National Assembly will also analyse the draft bill to amend the Income Tax Code (IRT), seeking to respond to the fiscal policy objectives set out in the National Development Plan (NDP) for 2018-2022, the government’s measures for fiscal consolidation and the general government lines for tax reform.
This package also includes discussion of a proposal to revise the General Tax Code. (macauhub)