Government proposes 230.5 percent export tax to curb fuel smuggling

The proposal was presented by the Secretary of State for Petroleum, José Alexandre Barroso, in parliament, under a law that authorizes the President, João Lourenço, to legislate the change in fuel export taxes.

A customs duty rate of 135 percent, a risk surcharge of 95 percent and a service charge of 0.5 percent are the executive's proposals, embodied in the aforementioned law, "to safeguard national interests, considering the subsidy of fuel prices".

The legislative initiative, discussed this Thursday in parliament, proposes taxing the export of gasoline, diesel and lighting oil with the application of these rates to the sale price to the public.

According to José Alexandre Barroso, the application of a customs export tax totaling 230.5 percent, bringing the cost of exports from Angola closer to the price charged in neighboring countries, combined with the reinforcement of administrative measures to be implemented by the Regulatory Institute of Petroleum Derivatives and the reinforcement of police control of the borders "may discourage the practice of illegal export of Angolan fuel".

The bill was considered during the 13th ordinary plenary meeting of parliament.

The Secretary of State recalled that the oil company Sonangol imports around 80 percent of the fuel consumed in the market, admitting that the "illegal export of fuel or its smuggling poses a great danger to the sustainability of the distribution of this product in the national market".

"And, also, in a general way for the national economy, this smuggling is boosted by the great difference in the prices of petroleum products practiced in Angola when compared to other countries in our region", he pointed out.

The prices charged in Angola, a liter of gasoline at 160 kwanzas and diesel at 135 kwanzas, also "stimulate" smuggling in border areas, in the opinion of José Alexandre Barroso.

"While in neighboring countries this price varies from 450 kwanzas to more than 800 kwanzas per liter, it is this price difference that has really encouraged the smuggling of fuel from our country to neighboring countries," he told deputies.

The executive "recommends customs taxation for fuels intended for export to discourage their illegal export, with the exception of fuel transported within the scope of cross-border trade, whose regulation is in its own diploma and is defended by international conventions and agreements", also pointed out the secretary of State.

And the deputies, especially in the opposition, pointed out, during the discussion, the Angolan provinces of Zaire and Cabinda, in the north of the country, as regions that "lead fuel smuggling", even accusing the "administrative and police authorities" of being " colluding with the practice".