PR says that higher consumer goods may register a bigger VAT cut, but does not indicate the date and which goods.

The President of the Republic, João Gonçalves Manuel Lourenço, said today in a speech on "The State of the Nation - Opening of the parliamentary year" that some consumer products may suffer an even greater reduction, but made no reference to when Angolans will be able to benefit from this reduction.

João Lourenço was speaking at the opening of the parliamentary year, addressing Angolans with a message on the state of the nation, where he guaranteed a reduction in the tax burden, namely the reduction of VAT on some products, and stressed that he will continue with the process of removing fuel subsidies "in a smooth and gradual way, accompanied by mitigation measures and stimulation of economic activity". 

"We are working to simplify and lighten the tax burden, whenever possible," said the head of state, admitting the possibility of lowering the VAT (general consumption tax) again, "without announcing the rate and date," after the reduction from 14% to 7% on food was announced in July.

The society that expected to hear from the Head of State broad guidelines for the management of the country, with a view to promoting the well-being of families and the development of Angola, especially at a time of global economic crisis, all that was heard were promises, such as the completion of the first phase of the Cabinda refinery, previously scheduled for the end of 2022 and now for the end of 2024.

"The Cabinda refinery will be a reality, and it is expected that the completion of the first phase will be ready to start operating by the end of 2024, with an initial processing capacity of 30 thousand barrels per day," said the President.

Meanwhile, the project is underway to build three new refineries, namely Cabinda, Soyo-Zaire, Lobito, which will employ more than five thousand young Angolans and, with the entry into operation, it is expected that they can generate more than two thousand direct jobs, and that they can save the state coffers millions of dollars that are spent every year on the import of almost all the refined products that the country consumes.

Within the scope of support for the promotion of Agriculture

The 2023-2024 agricultural campaign, which opened on the 6th of this month, had more than three thousand families across the country, and received about 153 billion kwanzas from the government to support national production.

This time, the President pointed out that the government made available, for the first time, a credit line "without mentioning the amount" for private national producers of commercial origin and established a guarantee scheme for the purchase of some products from the widely consumed field produced in the country.

The Credit Guarantee Fund, the Venture Capital Fund, the Agricultural Development Support Fund and the Development Bank of Angola itself have been boosted to continue supporting national production, particularly within the scope of Planagrão, Planapescas and Planapecuária, he said.

The 2023-2024 Agricultural Campaign has been prepared based on strong institutional engagement, leading the Government to institute, at the end of July, the Credit Guarantee Promotion Acceleration Plan (PAFGC), in which it grants a cumulative capitalization of 80 billion kwanzas to financial institutions that support national production.