Will Tax Reform Drive Equitable Development in Oil-Dependent Angola?

Angola is implementing a tax reform programme to increase non-oil tax revenues to 20% of GDP by 2017, aiming to reduce its acute dependence on oil. The reform includes merging national tax and customs agencies, updating tax codes, and introducing new property and consumption taxes. However, the document highlights significant obstacles, including a narrow tax base, lack of fiscal decentralisation, endemic corruption, and a weak taxpaying culture. While political will exists, the ease of collecting oil revenues may reduce the urgency for the sweeping reforms needed to address persistent underdevelopment and high inequality.

• The primary goal of the Executive Tax Reform Project, established in 2010 with a budget of $18 million, is to increase non-oil tax revenues from 6.4% of GDP in 2012 to 20% of GDP by 2017.
• Angola suffers from extreme economic inequality and underdevelopment despite its status as an upper-middle-income country; its Gini coefficient is 0.586, and over two-thirds of its 19 million citizens live on less than $2 a day.
• Administrative reforms include the merger of national tax and customs agencies into a single integrated revenue authority by 2017, though the government has been reluctant to adopt a fully semi-autonomous model due to a lack of enabling legislation or constitutional imperative.
• Legislative updates include three new tax codes passed in June 2013, a reduction of corporate taxes from 35% to 30%, and a new urban property code that increased projected 2013 revenues to $251 million from $48.6 million in 2010.
• Customs reforms indicate a protectionist shift, with import tariffs for non-oil sectors like livestock, water, and beer increasing from 30% to 50%.
• Significant barriers to reform include a narrow tax base—where oil constituted 80% of tax income in 2012—and a lack of fiscal decentralisation, as municipal tax revenues are collected in a centralised 'Single Account'.
• A weak taxpaying culture and endemic corruption hinder progress; 87% of the population considers government corruption widespread, and Angola ranked 157 out of 176 on the 2012 Transparency International corruption index.

APA

Anderson, E. J. (2013). Will Tax Reform Drive Equitable Development in Oil-Dependent Angola? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/08/Policy-Briefing-70.pdf

Chicago

Anderson, Emily Jean. Will Tax Reform Drive Equitable Development in Oil-Dependent Angola? South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/08/Policy-Briefing-70.pdf.

Wikipedia

{{cite report |last1=Anderson |first1=Emily Jean |title=Will Tax Reform Drive Equitable Development in Oil-Dependent Angola? |publisher=South African Institute of International Affairs |date=August 2013 |url=https://saiia.org.za/wp-content/uploads/2013/08/Policy-Briefing-70.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{anderson2013will, author = {Anderson, Emily Jean}, title = {{Will Tax Reform Drive Equitable Development in Oil-Dependent Angola?}}, institution = {South African Institute of International Affairs}, year = {2013}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2013/08/Policy-Briefing-70.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }