Luanda: Members of the National Assembly's 5th and 1st Standing Committees approved the Joint Report and Opinion on a bill authorizing the President of the Republic to legislate on granting additional tax incentives for six oil blocks at the committee stage on Thursday. The oil blocks, located in the ultra-deep waters of the Kwanza Basin, deep waters near Luanda, ultra-deep waters of the Lower Congo Basin, and deep waters of the Kwanza Basin, are identified as concession blocks 17/25, 19, 32/21, 33/24, 34, and 35.
According to Angola Press News Agency, the Joint Report and Opinion received unanimous support with 26 votes in favor, and lawmakers also approved the bill with 27 votes in favor. Rapporteur MP Eva Costa noted the high technical, operational, and geological complexity of these concession areas, which present significant exploration costs and risks. She emphasized that the current tax regime is insufficient to ensure the economic viability of the projects, necessitating additional tax incentives and adjusted eligibility criteria.
Costa outlined the proposed incentives' objectives, which include ensuring economic viability, attracting capital for new reserve exploration, increasing oil production, maintaining legal contract stability, promoting employment, and enhancing the national workforce's value. She also highlighted incentives for knowledge and technology transfer, increased state revenue, and broader economic benefits for Angola.
During the joint meeting, lawmakers also approved the Joint Report and Opinion on the State General Account for the 2024 fiscal year with 20 votes in favor and eight against. They recommended improvements in the document's presentation and public policy implementation to strengthen social safety nets, boost consumption among vulnerable groups, and reduce social inequalities. Lawmakers advocated for the sustainability of the "Kwenda" Social Protection Strengthening Program and its integration into the national protection system, along with better statistical data on school meals and protection of children's rights.
Additionally, they emphasized the importance of prudent public debt management to ensure debt levels remain within GDP limits.
