The implementation of the Value Added Tax (VAT) in Angola aims to increase state tax revenues, combat tax fraud and evasion, as well as provide greater tax justice, said today in Luanda the dean of the Faculty of Economics of the Agostinho Neto University (UAN), Redento Maia.
The academic, who spoke to Angop, on the sidelines of the debate on VAT “difficulties and solutions in its implementation”, promoted by the Faculty of Economics, said that Angola is the only country in the SADC region that has not yet implemented this tax.
The creation of VAT, in the view of the academic, is a good initiative, for it forces the formalization of trade and the economy as a whole and allows for a broader extension of the country’s tax base.
The professor pointed out some constraints to the implementation of VAT, such as the high degree of informalization of the economy, unorganized accounting of companies, lack of technicians, among others.
Despite the constraints listed by the economist and professor Redento Maia, the General Tax Administration (AGT) plans to insert VAT into the Angolan tax system as early as 2019, as part of the ongoing reform in the country.
For the VAT in Angola, the dean of the Faculty of Economics of UAN defends the application of a single rate and the minimum of possible exemptions, obligation of a simplified regime for the small and micro contributors and application of a zero rate to imports.