Angola provides tax relief to boost diamond industry

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An employee displays a handful of uncut diamonds in this arranged photograph at DTC Botswana, a unit of De Beers, in Gaborone, Botswana, on Thursday, Oct. 25, 2012. De Beers, the biggest diamond producer by revenue, is moving the sorting and trading of rough stones to Botswana from London to secure access to the world's largest supplier of diamonds by value and challenge Antwerp's dominance as the world's biggest trading hub for rough diamonds./Chris Ratcliffe/Bloomberg/ Getty Images

Angola plans to boost its diamond industry via tax relief in the fiscal year 2021, Pedro Marques, special taxation director of the country’s General Tax Administration said.

The measure, Marques said, will reduce tax costs for diamond companies and encourage them to produce and sell more diamonds.

“Angola expects to obtain 42 billion kwanzas (about 63.1 million U.S. dollars) in taxes from the diamond industry in 2021,” Marques said, adding that the forecast could be achieved taking into account the number of companies that plan to start operations in that period and the start of operations of the Luaxe diamond mine, which will be one of the largest diamond mines in the world.

The country expects to levy a total of 24.9 to 27.9 billion kwanzas (about 37.4 to 41.9 million dollars) from the diamond industry in the first nine months in 2020.

“Next year we will advise and help companies on how they can benefit from the various incentives that have been provided in the mining code, how companies can benefit from reduced tax costs and periods of grace in the payment of income tax,” he said.

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