CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Angola May Install VAT With IMF's Help

Angola May Install VAT With IMF's Help

by Lorys Charalambous, Tax-News.com, Cyprus

08 February 2017


In its latest Article IV Consultation with Angola, the International Monetary Fund (IMF) has suggested that the Government could introduce a value-added tax (VAT) to provide a stable non-oil revenue source.

The IMF noted that "the oil price shock that started in mid-2014 has substantially reduced fiscal revenue and exports. Growth was estimated to come to a halt in 2016 … and inflation has accelerated."

While it "welcomed the significant non-oil primary fiscal consolidation to date," the IMF "stressed that continued fiscal adjustment will be needed going forward to put public debt on a clear downward path while supporting economic growth over the medium term."

Over the medium term, the IMF recommended that "permanently lower oil revenue needs to be offset by higher non-oil revenue." Those reforms could involve "enlarging the tax base; creating a single revenue administration agency; strengthening tax inspections; and better enforcing real estate taxation."

The IMF stated that a VAT (in place of the present narrow-base consumption tax) could be introduced on January 1, 2019. It has estimated that a VAT rate of 10 percent (and a very high threshold of around USD250,000) could yield about 2.5 percent of gross domestic product in revenue to Angola.

In reply to the IMF's report, the Government "did not dispute the need for fiscal consolidation over the medium term, but stressed the urgent need in the near term to support growth after two years of fiscal retrenchment. … [It] remains interested in working closely with the Fund on fiscal structural reform, including a VAT, although they believe a VAT may take up to four years to be introduced in Angola."

TAGS: compliance | tax | value added tax (VAT) | tax compliance | International Monetary Fund (IMF) | Angola | tax rates | inflation

To see today's news, click here.

 
















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »