Taking stock of the tax reform process in Angola, and why tax incentives should be avoided

Angola is currently implementing a tax reform. The main objective of the reform is to increase non-oil tax revenues by broadening the tax base, rationalize incentives, increase control with voluntary tax payments and fight tax evasion. There is also a desire to use the tax system as a mechanism to provide incentives to investments and diversification of the economy. This brief argues that tax incentives in the form of lower rates, tax holidays and exemptions are likely to have negligible effects on investments. Extensive tax incentives are likely to undermine the efficiency and effectiveness of the tax system by creating room for bribery and corruption, increasing loopholes for tax evasion and distorting competition. Sticking to clear, unambiguous tax rules with not too many exceptions would likely avoid many unnecessary current and future conflicts.

Download publication

Last updated: June 05, 2012

Share |

Participating institutions


Decentralisation and Local Government in Angola

On Angola:

Avoiding Africa's Oil Curse. What East Africa Can Learn From Past Booms

22 Apr 2014 Foreign Affairs

East Africa is the global oil and gas industry's hottest frontier. Barely a month goes by, it seems, ...

Angola Growth Targets Delay Tax Reform: Michelsen Institute

27 Mar 2014 Bloomberg Business Week

Planned tax changes in Angola, Africa's second-largest oil producer, are hindered by inaccurate budget ...

IMF Executive Board Concludes the Second Post-Program Monitoring with Angola

19 Mar 2014 International Monetary Fund (IMF)

On March 5, 2014, the Executive Board of the International Monetary Fund (IMF) concluded the Second ...

News from selected sources:

Angola at 16th session of the UNIDO General Conference in Vienna

27 Nov 2015 Angop - Economy

Luanda - Angola will participate from 30th November to December 4, 2015, in Vienna-Austria, at the 16th ...

President congratulates East Timor on independence celebration

27 Nov 2015 Angop - Politics

Luanda - Angolan head of State José Eduardo dos Santos Friday congratulated his counterpart of Democratic ...

Angola at 16th session of UN General Conference in Vienna

27 Nov 2015 Angop - Economy

Luanda - Angola will attend the 16th General Conference Session of the United Nations Industrial Development ...

2015FIPA: Fisheries sector among key factors in combat hunger, poverty

27 Nov 2015 Angop - Economy

Luanda - The provincial governor of the coastal Cuanza Sul province Eusébio de Brito Teixeira said Thursday ...

Lunda Sul: Governor wants more investment in agriculture

27 Nov 2015 Angop - Economy

Saurimo - The governor of the eastern Lunda Sul province Cândida Narciso Thursday in Saurimo called ...

CMI (Chr. Michelsen Institute)
Phone: +47 47 93 80 00 - From abroad: +47 55 70 55 65
Fax: +47 47 93 80 01
E-mail: cmi@cmi.no - Web: www.cmi.no
P.O.Box 6033 Bedriftssenteret, N-5892 Bergen, Norway
Visiting address: Jekteviksbakken 31, Bergen