The Finance Minister said that the government knows that it cannot risk new indebtedness, but financing must be found to essentially restore infrastructure. The funds should come from tax revenues.
Cited by Jornal de Angola, Vera Daves explained that for this, the State should identify which taxes are not currently being collected, thus allowing to collect revenues without having to burden taxpayers with an increase in taxes.
The minister's words come at the same time that the proposal for a Simplified Regime of Value Added Tax (VAT) was launched for public consultation.
The proposal aims to help taxpayers by relieving the VAT tax burden. According to the document, cited by Jornal de Angola, "the simplified regime aims to ensure that in 2021, with the repeal of the transitional regime, only a small and sustainable number of taxpayers will pass to the general regime, with a turnover above the mentioned threshold, which will allow greater preparation both on the part of the General Tax Administration and taxpayers".
The document also establishes that taxpayers with a turnover or imports of 350 million kwanzas or less will now pay a fee of seven percent of the sales volume received. They are exempt from the payment of the stamp tax receipt.
On the other hand, taxpayers who are part of the simplified regime will be able to deduct seven percent of the total VAT borne on purchases of goods and services and on imports. They will also be entitled to request, once a year, a refund of 50 percent of their total credit.
Also on the table is the possibility that taxpayers with a turnover below 10 million kwanzas will be exempt from the obligation to pay VAT, without prejudice to being subject to other taxes.
For José Severino, president of the Industrial Association of Angola, the reduction of VAT is important to help companies and the national economy. He considers that companies cannot afford to pay a 14 percent tax.
The proposal should be part of the Law that approves the General State Budget for 2021.
