Luanda: Fiscal incentives for the national economy in Angola have seen a substantial increase, expanding from 184.2 billion to 2.98 trillion kwanzas between 2018 and 2024, as reported by the Secretary of State for Finance and Treasury, Otoniel dos Santos, on Monday. This announcement was made during the opening of the regional seminar on Fiscal Incentive Management organized by the Regional Technical Assistance Center of the International Monetary Fund (IMF).
According to Angola Press News Agency, the Secretary of State highlighted that this surge represents an accumulated growth of approximately one thousand and 517 percent. This growth has resulted in the proportion of tax waivers in the national economy rising from 0.64% to 2.9% of the Gross Domestic Product (GDP). In terms of total tax revenue, the proportion increased from 3.1% to 17.17%, indicating that more than a sixth of the State's potential tax revenue was forgone through exemptions and preferential regimes.
The report further detailed that about 91% of these waivers are concentrated in the non-oil sector, supporting the import of food, raw materials, and stimulating the national manufacturing industry. Otoniel dos Santos emphasized that while these incentives are crucial for attracting investments and generating jobs, they are not without cost, as they represent resources that could have been directed towards priority areas such as health, education, social protection, and public investment.
The management of tax incentives has become a focal point of tax policy with the approval of the first Tax Benefits Code (Law no. 8/22, of 14 April). This code unified previously scattered rules and is part of the broader strategy to enhance the quality and transparency of public accounts, following the adoption of the Public Finance Statistics Manual (GFSM 2014) in October 2025.
The AFRITAC South seminar, running until next Thursday, includes participation from delegations across the southern region, alongside diplomats, technicians, and managers from the national macroeconomic and tax sector. AFRITAC South, a division of the International Monetary Fund's 17 Regional Capacity Development Centers, aims to support finance ministries, banks, tax authorities, and statistical agencies.