“Angola is currently implementing a major tax reform programme, which aims to boost non-oil tax revenue as a means to diversify
its economy. Broadening the tax base will play a critical role in reducing
natural-resource dependence and vulnerability to international commodity price and demand volatility. Improving revenue collection
and redistribution mechanisms also has the potential to strengthen the state’s institutions and relationship with society. However, the government has not used its tremendous oil wealth to develop other
sectors of the economy or promote social development, leaving the country with a narrow taxable base and an exiguous taxpaying culture. The government faces several other challenges including limited fiscal
decentralisation, widespread evasion and corruption, and lack of institutional and legal foundations. Political will for reform is manifest in the administration, but the question remains whether enhanced taxation
will help to reconcile the disconnection between Angola’s extraordinary macroeconomic achievements and persistent underdevelopment.”
