Luanda — The new collection of Value Added Tax (VAT) at five percent, for 20 categories of widely consumed food products, came into effect from this month (January 2024).
The Act was approved by the National Assembly, last November, in a proposal by the Angolan Executive to reduce this tax from 14 to 5% on basic food products.
For the province of Cabinda, VAT was reduced from 2 to 1%, taking into account the special regime in force in that Angolan region.
The VAT reduction applies to products such as fresh and frozen pork, beef, goat, lamb meat and its offal, frozen and dried fish, chicken thighs, condensed and powdered milk, margarine, eggs, beans, sweet potatoes and reindeer potato.
It also requires a reduction in cassava and yams, corn grains, wheat grains, millet grains, soybeans, sugar, salt, corn flour, cornmeal, wheat flour, meat sausages, bread, cooking oil, mineral and table water and soap.
From the perspective of the Executive, which presented the legislative initiative, the reduction in VAT will increase the purchasing power of families, contribute to food security and macroeconomic stabilization.
The Proposed Law that Amends the Value Added Tax (VAT) Code was requested in an urgent process by the President of the Republic, João Lourenço, as Holder of the Executive Power, under the terms of the Constitution of the Republic and the Rules of Procedure of the National Assembly. OPF/AC/DOJ
