Angolan industrials seek to reduce industrial tax rate to 25 percent

Luanda, Angola, 16 Feb – The Angolan Industrial Association (AIA) wants the industrial tax rate to drop to 25 percent, as its president insists that the reduction from 35 percent to 30 percent is not enough, reports the Angolan weekly Expansão.

José Severino told the periodical that for the past three years the institution he directs has been proposing the tax reduction to the fiscal administration, mainly due to its “incompatibility” with the tax systems in force in 13 of the 15 countries in the Southern African Development Community (SADC), of which Angola is a member.

Along with the tax on profits, other economic constraints include the consumption tax, which can reach 30 percent, and the stamp tax, “with an increase of 0.3 to 1 percent,” he explained.

Severino stressed that a 30 percent tax on profits would not be good for economic growth, given that the main competitor South Africa taxes at a rate of 28 percent and the regional average is less than 25 percent.

The AIA’s proposal has always been to reduce the industrial tax to 25 percent, which would be shared between the state (20 percent), business associations (2.5 percent), unions (1.5 percent) and universities (1 percent), with a view to enhancing institutional capacity and job training, he said.

The reduction of the industrial tax from 35 to 30 percent was announced by the State Secretary for Finances, Valentina Filipe, when the law for the new General Tax Code was approved last 24 January, indicating that the government intended to go even farther. (macauhub)

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