Africa Oil & Gas: Angola Tax Reform to offset drop in oil revenue

Substantial changes have been prepared by the government over the past two years.

Gains from tax reforms introduced this year in Angola will offset the declines in oil revenues that are increasing the country’s budget deficit, the director for taxation at Ernst & Young Angola said in Luanda. Substantial changes in taxes on income, capital and consumption as well as to social security, have been prepared by the government over the past two years.

The measures will make it possible to raise tax revenue and have come into force precisely when oil revenues are falling sharply due to a drop in international oil prices.

“In the medium term, and with the development of the formal economy and Angola-based economic activity, I would not be surprised if the Angolan state was able to raise enough non-oil revenues to offset oil,” said Charles Wolf, cited by Jornal de Angola.

In 2014 oil exports provided Angola with US$27.5 billion, a drop of US$5 billion compared to 2013, due to a decline in the international price of oil, according to the Ministry of Finance. (macauhub/AO)