João Lourenço spoke at the opening of the parliamentary year, addressing Angolans with a message about the state of the nation.
"We are working to simplify and alleviate the tax burden, whenever possible", said the head of state, admitting the possibility of lowering the VAT tax (general consumption tax) again, after the reduction was announced from 14 percent to 7 percent for food products.
"Within the framework of the ongoing parliamentary debate, I express our openness to the fact that, in relation to some products of widespread consumption by our population, a greater reduction than the proposal may be considered, as long as this does not compromise the exercise of balancing public accounts and the State's ability to continue honoring its commitments", he stated, to loud applause from the MPLA bench, the ruling party.
With regard to the process of removing fuel subsidies, which "were subsidized for decades, reaching consumers at prices well below the production and purchase prices when they are imported", he highlighted that the situation was "unaffordable for any economy".
"The structural adjustment of our public finances also led to the adoption of courageous measures whenever necessary, even if they may be seen at a given moment as less popular", he said, guaranteeing that "the Executive will continue to gradually make the necessary adjustments until they approach real market values".
The President expressed confidence in the benefits of this measure, in terms of public finances and the promotion of greater social justice, and assured that the process will proceed "smoothly and gradually" with measures to mitigate and stimulate economic activity.
He also spoke about the effects of the pandemic in 2020 and 2021, as well as the inflationary pressures arising from the war in Ukraine, with a special impact on countries most vulnerable to external shocks.
"As a consequence of this, the recent assessment of the national economy allows us to foresee a slowdown in economic activity", which will be compensated with expected growth in the non-oil sector of around 3.5 percent due to measures to stimulate the economy, with a view to increasing internal production, declared the head of state.
João Lourenço, who began speaking at around 11:30 am, addressed in this first part of his speech mainly economic issues and the state of Angolan public finances.
