Angola: National Assembly Approves Property Tax

Luanda — The National Assembly (AN) passed last Friday, in general terms, the bills that approve the Property Code and the Motor Vehicles Tax Code.

The bill that passes the Property Tax Code was approved with 175 votes in favour, no votes against and seven abstentions, while the Motor Vehicles Tax Code was approved with 162 votes in favour, no votes against and seven abstentions. When presenting the bill that approves the Property Tax Code, the minister of Finance, Vera Daves, said it is time to make a deeper adjustment, adapting the diploma to the country's social and economic reality. To the minister, the moment of the process that is being carried out, that is, the administrative decentralization process is to culminate in the implementation of the local (municipal) governments, also demands such exercise. According to the minister, this tax will constitute one of the main sources of financing for future municipal administrations, based on Law No. 13/20 (Law on Financing of Local Governments).

She stressed that the 2020/2022 National Development Plan establishes guidelines to broaden the tax base and have efficient revenue collection, based on the collection of taxes and the maximization of non-oil revenues.

With this diploma, the Executive starts to tax unproductive agricultural land, in order to encourage those who hold them to exploit their properties (agricultural land plots) or give them up (rent them or through another type of contract that they may prefer) to those who have financial conditions, as well as make the property tax revenue act as a typical revenue source for local governments. Regarding the Motor Vehicles Tax Code, Vera Daves stated that the draft law restructures the legal regime for the current road tax and traffic inspection fees, raising them to the category of tax.

The diploma proposes the enlargement on the taxation for recreational vessels and private aircraft, as well as reducing the rate, by 50%, for vehicles intended for agriculture.

She also mentioned that ambulances and modified vehicles for disabled people are excluded from taxation, while a fee will be fixed for vehicles assigned to administrative agents, for personal and non-protocol use.

By proposing the diploma, the government intends to revoke the Road Tax and, instead, put an additional taxation on cars with longer usage times.

Both diplomas will now be analysed by the specialty commissions of the National Assembly (parliament) for final adjustments.

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