Monday, December 11, 2023

Angola is preparing to face 2024 with a new budget

Parliamentarians from the Popular Movement for the Liberation of Angola (MPLA), Humanist Party of Angola (PHA), Social Renewal Party (PRS) and National Front for the Liberation of Angola (FNLA) gave 111 votes in favor of the budget proposal. .

Meanwhile, members of the National Union for the Total Independence of Angola (Unita) group gathered 74 votes against the project, with no abstentions.

In January 2024, the new budget will be implemented, which proposes an estimated revenue and expenditure of 24 trillion kwanzas (about 28,437 million dollars), including a five percent salary increase for the public service.

Regarding the financial balance, a surplus of 0.02 percent is expected, trying to combine internal and external financial sources; and an increase in gross domestic product (GDP) of 2.84 percent, which was basically supported by the performance of sectors other than the oil industry.

Funds allocated to the social sector and agriculture will grow compared to the year 2023, as another issue to be highlighted.

The approval of the reduction of VAT is another issue of impact that was decided this week in the National Assembly, where 106 votes were in favor of the reduction from 14 to five percent.

No parliamentarian voted against and there were 71 abstentions.

The initiative of the Executive should be applied to consumer products and, in the case of the province of Cabinda, the VAT will increase to one percent, due to the Special Regime implemented in that region due to its geographical discontinuity.

Products under the new provision include meat and offal of beef, pork, lamb and goat, chicken (except turkey and goose), fish (except shark, salmon and cod), milk, yogurt, butter and margarine.

Also eggs, vegetables, fruits, tea, cereals, corn and wheat flour, oil, sugar, pasta, bread and other pastry products, water and salt, etc.

Many deputies from the opposition in the parliament think that the tax on these food products should be completely eliminated, in addition to asking why the reduction of some products and not others.

However, the Minister of Finance, Vera Daves, explained that a zero percent VAT is not possible, because based on the analyzes carried out in other similar situations, the final result is price increase instead of decrease.

World Nation News Desk
World Nation News Desk
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