Angola: New tax imposed on oil companies – closes loophole, benefits country

By 2017 or soon after, a value-added tax on finished products and services will replace the consumption tax that’s charged on each stage of manufacturing, Luther said. The new levy will cut the “cascading effect” of the current tax, which increases inflation by making prices higher than a lone tariff on the final product, he said.

Discussions were under way at state petroleum company Sonangol EP, the Ministry of Petroleum and among oil officials about whether to reduce the industry’s tax exemptions for raw materials and trim the current 90 days that oil companies are allowed to finish a customs declaration, Nicholas Neto, head of the Policy and Procedures Department Angola’s National Customs Service, said in an interview in May.

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