The legal instrument that reduces the VAT rate from 14 percent to 7 percent also establishes VAT of 5 percent for around 20 widely consumed products and a single VAT incidence rate of 1 percent for the province of Cabinda, with the its special regime, given the geographical discontinuity of the northern region of Angola.
According to the joint opinion report on the specialty, presented this Thursday in parliament, the revised diploma introduces adjustments to bring together in a single diploma all the scattered legislation that deals with VAT.
The objective is also to introduce a set of procedures that aim to provide greater flexibility, efficiency and fairness to tax within the process of assessment, declaration and payment and refund of VAT credits.
The parliamentary group of the Popular Movement for the Liberation of Angola (MPLA) voted in favor of the proposal to change the VAT code as it understands that it "unequivocally translates the commitment to solving the people's problems".
"We voted in favor because we recognize that a reduction in VAT from 14 percent to 5 percent on 20 categories of widely consumed food products represents a considerable and balanced adjustment so that there is a positive impact on the progressive return of purchasing power to Angolan families", explained deputy Kilamba Van-Dúnem in his party's declaration of vote.
The National Union for the Total Independence of Angola (UNITA), which abstained, supported the vote by saying that it aimed to "show its distance from the executive's fiscal policies, particularly with regard to VAT".
"Taxing primary foods at a rate of 5 percent is an ineffective measure that does not improve the population's access to basic food items and, consequently, does not resolve the current state of widespread hunger", said deputy Florêncio Canjamba, reaffirming that your party defends zero VAT on basic food products.
Meat, fish, milk, butter, eggs, vegetables, cooking oil, sugar, cereal grains and others are some products proposed to be taxed with 5 percent VAT.