Praia, Jan 27 (Inforpress) – The Deputy Prime Minister and Minister of Finance, Olavo Correia, clarified this Thursday that the most important part of the tax waiver has been for the domestic market, leaving the foreign investor around 30%.
The official intervened in Parliament, during the assessment of the general account of the State for 2019, having presented these data following the questioning of the main opposition party in relation to tax benefits.
“Everything that is VAT tax, where we have exemption – zero rate or moderate rate 5%, is for the domestic market. Essential goods, all of this is accounted for with waiver and tax expense and when the IMF comes to discuss with me that I have to regularize this I say that it has to look at the impact on the price. Moreover, the impact on less well-off families and the impact on the Cape Verdean economy, because we are not talking about external investors”, said Olavo Correia.
“In particular, in terms of essential goods, we have more than 2000, where we have a zero or reduced tax. And that is where the essence of fiscal expenses and the fiscal meeting lies”, he said, adding that the taxation of these goods would be penalizing, above all, in this context of price increases for the national market and for less wealthy Cape Verdean citizens.