The Angolan government has shown an open attitude towards the previous “businessmen’s proposal to reduce the value-added tax to 5%.” President Joao Lourenço confirmed on the 15th that the tax cut will be realized soon and the reduction of the value-added tax rate will be included in the proposed proposal. In the national budget for 2022.
This was announced by President Lorenzo during his State of the Union address in the National Assembly.
Lorenzo said that in view of the rising inflation rate, “significantly lowering the value-added tax rate paid for consumer goods” will help reduce the pressure on the cost of living.
Currently, 12 business associations are negotiating with the government to reduce the value-added tax rate from 14% to 5% before the end of the year to offset Kwanza depreciation and reduce the decline in the purchasing power of Angolan households.
The government’s Minister of Economy Darva Linget and the Minister of Planning Milton Reis, who is responsible for negotiating with social partners, formalized the proposal at the relevant meeting.
The 12 associations proposed to reduce the value-added tax rate to 7%, that is, to simplify "the tax rate applicable to taxpayers, but ultimately reduce the tax rate for imported agricultural products to 5%.