Angola to end tax exemption for oil producers

Angola is imposing a consumption tax on petroleum companies that will raise some costs by as much as 10 percent, according to reports citing government documents.

The law requires companies to follow a tax schedule that adds five percent to most services and supplies and double that for equipment rentals.

Angola, which is a member of the Organization of Petroleum Exporting Countries, set up a special tax reform branch in 2010 to work with government ministries on increasing revenue and closing loopholes in a bid to simplify taxation.

Majors like BP, Statoil and ConocoPhillips are amongst those investing in the country, which pumped about 1.74 million barrels a day in September from offshore fields, according to data compiled by Bloomberg.

Image: © Thinkstock

Copyright is owned by Africa Outlook and/or Outlook Publishing. All rights reserved.