Luanda - National Assembly has proposed a reduction of the Value Added Tax (VAT) rate below seven percent for widely consumed products, aimed at lessening the impact of the rise on food prices in the country.
The proposal was forwarded during a meeting of the MPs of the 1st and 5th Commissions of National Assembly intended to assess, discuss and vote, in particular, on the Draft Law amending the Value Added Tax Code.
The participants also suggested the selection and clarification of products that should be part of the national basic food basket.
Among various changes, the Angolan Executive's proposal envisages the reduction of VAT from 14 to 7% on widely consumed foodstuffs, but the MPs described this percentage as inadequate and unfeasible to mitigate the impact of the current rise in prices on families' lives.
MP Paulo de Carvalho called for the need to set a lower rate of 7% of VAT on basic foodstuffs, in view of many families facing poverty, aggravated by a high unemployment rate in the country.
According to the sociologist, this measure can be accompanied by a rise in VAT on products that are less sought after and consumed by the population, in order to compensate for the decrease in prices of essential goods.
Maria Pires dos Santos thinks that the amendment to the aforementioned Law will contribute to the relief of citizens' pockets, making food reach families' tables at an affordable price.
In order to achieve this goal, the member of Parliament defends the improvement and deepening of this document, applying a VAT rate that facilitates the acquisition of food and nutritious products for the population. QCB/BA/CF/NIC
