The announcement was made this Friday by João Lourenço, who spoke to the Nation for the fourth time since he assumed the position of President of the Republic of Angola, about 15 minutes after the solemn plenary session of the 5th legislative session of the 4th legislature of the National Assembly.
On this measure, the head of state only said that it is "a proposal to significantly reduce" the value of VAT payable on "a set of consumer goods", which will help to alleviate the cost of living, given the high values of the inflation reached 26 percent in August.
João Lourenço also mentioned other measures with which the Executive has been trying to control the rise in prices, such as the exemption of customs duties for some products.
The disruption caused by the covid-19 pandemic in the international market, which caused a rise in the prices of consumer goods that Angola imports, as well as in transport costs, was the main reason given to explain the increase in the price of goods domestically.
"Inflation rates that had been declining since 2018 reversed this trajectory in 2020, with this upward trajectory remaining in the current year", said João Lourenço, adding that the National Bank of Angola is focused on reversing this situation, supported by measures of the executive.
João Lourenço highlighted that "even in the face of all the challenges that unexpectedly emerged, as is the case of covid -19, which deepened "very severely" the effects of the economic and financial crisis, the executive remains committed to promoting good governance, fight corruption and impunity, promote macroeconomic stability and diversification of the economy, and promote the recovery of society's values.
"We are laying the foundations for a dynamic and inclusive market economy as pillars for the prosperity of the Angolan people," he said, also considering that the executive's response to covid-19 was "quick and assertive", having taken appropriate measures to containment early, while recognizing "severe effects on public finances".
He said, however, that fiscal performance was better than expected, thanks to the broadening of the tax base and improvement in the tax collection process.
On the other hand, as the process of vaccination against covid-19 advances, the "world is seeing an environment of better opening of its economies, "which has been reflected in the improvement in the price of oil on the international market".
With this favorable evolution, the updated fiscal projections point to a 26 percent increase in revenue compared to the State Budget for 2021, despite oil production being below forecast.
Surpluses from oil revenues will bolster the Treasury's single account, he announced.
Establishment of minimum cash reserves, budget reinforcement for the execution of projects and public investments, increase in the workforce in the health and education sectors and proceed with the payment of overdue debt are some of the objectives to be achieved, arising from the improvement in the price of oil in the international market.
He assured that economic reform measures will continue towards a recovery scenario and underlined that situations of influence peddling and discriminatory and unfair behavior in foreign exchange operations were corrected and eliminated.
"The adjustment of the foreign exchange market is a very important element for the competitiveness of the economy and the increase of national production", he highlighted, indicating that since November 2020 that the national currency, the kwanza, has remained stable and even appreciated in recent times, the difference between official and parallel market is currently estimated at 10 percent.
