Angola: 2023 Retrospective - Vat Change Marks Parliamentary Year

Luanda — The approval of the Draft Law that amends the Value Added Tax (VAT) Code, from 14 to 5% for food products for wide consumption, marked parliamentary activity during the year 2023.

By Domingos Cambiete, ANGOP journalist

The legislative initiative of the President of the Republic aims to adapt it to the current reality of the country, in the economic and social aspect, to make life easier for families and companies.

The products offered in the 5% VAT package include meat and offal of beef, pork, sheep and goats, poultry (except turkey and goose), fish (except shark, salmon and cod), milk, yoghurt, butter or daisy.

The package also includes eggs, edible vegetables, fruit, tea, cereals, maize and wheat flour, cooking oil, sugar, pasta, bread and other pastries, water and salt.

The measure is extended to agricultural inputs (5% VAT), with a view to macroeconomic stabilisation, increasing the supply of essential goods of wide consumption and their factors of production.

Throughout the debate, the parliamentary opposition has called for the total abolition of VAT for these food products which are widely consumed by the population.

The Minister of Finance, Vera Daves, clarified that a VAT below 0% is unfeasible, because the final effect is to increase the prices of products and not reduce them.

In the proposal, the province of Cabinda will have a single VAT incidence rate, in the order of 1%, taking into account the Special Regime in force in that region, because of the geographical discontinuity.

Meanwhile, among the laws definitively approved in the 2023-2024 parliamentary year, the Draft Law that approves the General State Budget (OGE) for the 2024 financial year stands out, which provides, among others, for a salary increase in the Civil Service in the order of 5%.

The State Budget proposed by the Executive includes revenues and expenses estimated at 24 billion kwanzas, which represents an increase of 22.94% compared to the 2023 State Budget.

The Proposal is based on the average price of a barrel of oil of US$65, thus weighing the uncertainties and risks associated with the voting of the price of a barrel in the international market.

Concrete actions to boost the economy and improve the business environment are also considered, with emphasis on the provision of a financing line valued at 153 million kwanzas, with competitive interest rates, to finance projects in the agricultural, industry and commerce sectors.

The National Assembly unanimously approved UNITA's request to the Executive for the General Strategy for the Country's Medium and Long-term Indebtedness.

The Angolan Parliament also gave the "green light" to the President of the Republic, as Head of the Executive Power, to legislate on the updating of the Customs Tariff on Import and Export Duties.

The legislative authorization aims to update the Customs Tariff in force in the country, approved by Presidential Legislative Decree No. 10/19, of November 29, in order to adapt it to the 2022 version of the Nomenclature of the Harmonized System (HS) of Merchandise Description and Coding.

The scope of this legislative procedure is to adjust the rates of import duties applicable to imported goods and to similar or identical products produced in the country, in order to encourage the increase and diversification of national production, namely agricultural production and industrial protection.

The parliamentary year was also marked by the 'lead' of the process of initiating the impeachment and dismissal of the President of the Republic, João Lourenço, formalized by the UNITA Parliamentary Group.

The Plenary of the National Assembly voted not to create an Ad Hoc Commission on the Process of Impeachment and Dismissal of the President of the Republic', signed by 90 Members of the Parliament of the UNITA Parliamentary Group, which was supposed to prepare an opinion report to continue the process.

UNITA's initiative was rejected with 123 votes against (MPLA and PHA) and one abstention from the PRS. UNITA, the proponent of the initiative, did not participate in the voting process due to alleged procedural irregularities.

Parliamentarian Jú Martins, from the MPLA, said that what was at stake were 'tricks of UNITA' that after announcing that it would propose the dismissal of the President of the Republic in July, was 'simulating the involvement of civil society' and 'managing this element' to present the initiative on the eve of the opening of the new parliamentarian.

The MPLA parliamentary group reiterated its unconditional support for the President of the Republic and the MPLA, João Lourenço, 'in the arduous but noble task of directing the destinies of the country, continuing with his brand of governance and leadership in solving the problems that affect the population'.

In the light of Article 129 of the Constitution, the President of the Republic can only be removed from office for crimes of treason and espionage, for crimes of bribery, embezzlement or in case of permanent incapacity to continue in the office.

João Lourenço is serving his second term, legitimized by the victory of his party (MPLA) in the 2022 general elections, by an absolute majority.

UIP Meeting

In another area, Angola made headlines with the 147th General Assembly of the Inter-Parliamentary Union (IPU) for the first-time last October, which was attended by more than a thousand delegates from around the world.

The event, opened by the Angolan Head of State, João Lourenço, was marked by the election of the new president of the IPU, Tanzanian Tulia Ackson, who replaced Portuguese Duarte Pacheco.

Tulia Ackson, recognized as one of the most active members of parliament of SADC, is the first woman of the IPU on the African continent and in the history of East Africa to hold the presidency of this organization.

At the Luanda meeting, the IPU presented the 2023 Cremer-Passy Prize, which was awarded to the President of the Parliament of Tuvalu, Samuelu Teo, who has made an outstanding contribution to climate action.

The representative of Tuvalu, a country located in the south of Oceania and made up of a group of nine islands and atolls, has done a commendable job in promoting awareness of the effects of climate change, especially in small island states such as his.

The Speaker of the Angolan Parliament, Carolina Cerqueira, highlighted with satisfaction the fact that Luanda's meeting brought together more than 1,500 participants from 131 countries around the world, constituting a record of participation of States in the last meetings of the IPU.

In the Luanda Assembly, peace prevailed and the commitment of the members of parliaments to include these values in the great causes of humanity.

The general debate focused on parliamentary action for peace, justice and strong institutions.

In their speeches, MEPs have spoken out in favour of the silence of arms wherever war is currently raging, as well as in favour of a negotiated solution to conflicts. DC/VIC/DOJ

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