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

News

29
Apr
2014
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:

Vice president at anniversary of Afro/Asia Conference, Alliance

19 Apr 2015 Angop - Politics

Luanda - The Angolan vice president , Manuel Domingos, is representing the head of State , José Eduardo ...

Students with special needs praise school inclusion strategies

18 Apr 2015 Angop - Education

Luanda - Students from the Special Needs School number 1022 at Golfe1 ward of the Kilamba Kiaxi District, ...

New director general of FAA Pension Fund presented

18 Apr 2015 Angop - Politics

Benguela - The minister of National Defence, João Lourenço, last Friday in the central Benguela Province ...

Improvements in accommodation of Border Police officers promised

18 Apr 2015 Angop - Politics

Menongue - The housing conditions of staff of the Border Police on the borders with Zambia (east) and ...

MPLA condemns acts of violence, instability in some provinces

18 Apr 2015 Angop - Politics

Luanda - The meeting of the Secretariat of the ruling MPLA Politburo expressed last Friday serious concern ...

CMI
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