50% reduction in the VAT rate for products of the basic food basket

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

• Sugar
• Mineral and table water
• Sweet potatoes and white
• potatoes
• Fresh or frozen meat - beef, goat,
• sheep and their offal and pork
• Chicken thigh
• Meat sausages
• Maize flour
• Wheat flour
• Beans
• Cassava flour
• Yam
• Condensed and powdered milk
• Cassava
• Margarine
• Sweet corn grain
• Corn grain
• Cooking oil
• Eggs
• Bread
• Frozen and dried fish
• Soap
• Salt
• Soy beans
• Grain wheat

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Read the original publication at PLMJ