Major increase in import and consumption taxes in Angola

Angola steeply increases consumption and import taxes.

With a widening fiscal deficit generated by crashing oil prices, the country’s main export by far, the Angolan Government introduced large hikes in the values of the Consumption Tax Regulation and the General Customs Tariff. This decision will have a negative effect on price levels, already under pressure due to the falling kwanza (37% last year – official rate).

Yes, if want to enjoy a drink (or the increasingly politically incorrect smoke) in the tropical nights of Luanda you will have to expend a muck larger amount of the local currency. That will also apply, although with smaller hikes, to gasoline (5%), diesel (2%), lubricant oils (2%) and propane gas (2%).

Life is not getting easier.

Imports Consumption Tax new values (examples):

Juice and water: 40% (10% before)
Beers: 60% (20% before)
Alcoholic beverages: 70% (30%before)
Tobacco: 80% (30% before)

You may read the complete law text here (in Portuguese).

Published by

Luís Chambel

Exploration & Research Mining Engineer, MSc Engineering Geology, MBA, PhD European Engineer -EUR ING; Euro Geologist - EURO GEOL

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