Angola: Government Hikes Fuel Export Taxes

Luanda — The Angolan government will change the export rates and surcharges for oil derivatives, to mitigate the negative impact of illegal fuel exports on the economy and the subsidy that these derivatives benefit from in Angola.

The Legislative Authorisation Bill that authorises the President of the Republic, as Holder of the Executive Power, to legislate on fiscal matters for the Alteration of Fuel Export Duties was unanimously approved today in the Parliament.

With the approval of the document, the Government will, from now on, tax the exportation of diesel, gasoline and illuminant oil, with the application of taxes to the public sale price.

The Secretary of State for Oil and Gas, José Alexandre Barroso, said in the chamber that fuel smuggling was made worse by the difference in prices of oil products in Angola, compared to other countries in the region.

As an example he said that a litre of petrol in Angola was sold at 160 Kwanzas (Kz), whilst in neighbouring countries the price ranged from Kz 450 to 800 per litre.

In turn, a litre of diesel, sold at petrol stations in the country at 135 Kz, is sold at over 450 Kwanzas in Angola's neighbouring countries.

"It is this price difference that has really motivated and encouraged the smuggling of fuel from our country to neighbouring countries," he said.

He said that the government proposed applying a customs duty rate of 135 percent, a risk rate of 95 percent and a service charge of 0.5 percent.

This article originally appeared on ANGOP

Photo: The Chemical Engineer