The Angolan Draft General State Budget for 2022 was approved at a meeting of the Council of Ministers on 28 October. Among other provisions, it introduces a change to Value Added Tax (VAT) that is intended to boost the purchasing power of families in relation to essential consumer goods, and to increase their production factors. This will consequently mitigate the effects of the economic crisis aggravated by the Covid-19 pandemic.
This measure, which is temporary in nature, reduces the tax rate from 14% to 7% on the following products of the basic food basket:
Products of the basic food basket
Besides the above products, this measure applies to production factors, small and medium-sized vessels, fishing equipment, agricultural and industrial machinery and equipment, and agricultural inputs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.