Angola: Growth targets delay tax reform

Planned tax changes in Angola had been hindered by inaccurate budget targets and perceptions the measures would hurt the economy, the Christian Michelsen Institute said. The country has yet to approve three new tax codes first submitted to the government in 2011. President José Eduardo dos Santos in October cut an estimate of last year’s economic expansion to 5.1 percent from 7.1 percent, while the 2012 budget projecting a 12.8 percent increase to the $114 billion (R1 trillion) economy was later lowered to 7.1 percent. “Tax reform is being delayed because it’s perceived as adding both economic and administrative constraints to economic growth,” Odd-Helge Fjeldstad, the senior researcher at the Norway-based institute, said on Wednesday. “Budget forecasting has disconnected from reality by overestimating revenue from non-oil industries.” He added: “The government seems to lack the political will, transparency and expertise to reform taxes and improve revenue projections.” – Bloomberg