The Cape Verde State Budget for 2017 foresees a global amount of 56 billion Cape Verdean escudos (CVE), representing an economic growth of 5.5%.
The proposal presented by the Cape Verdean Executive foresees a total revenue of 50 billion CVE and an expenditure volume of 56 billion CVE, which shall represent a total budgetary deficit of 6 million CVE, representative of 3% of the GDP, a reduction from the 5.2% marked last year.
During the course of the execution of the State Budget, the Private Investment will be fostered through a set of tax incentives which may be exceptionally conceded for a maximum period of 15 (fifteen) years:
- Import Duties;
- Corporate Income Tax;
- Personal Income Tax;
- Wealth and Stamp Duty Tax.
Notwithstanding the grant of the aforementioned tax incentives, the investment proposal shall involve, among other pre-conditions, the submission of a proposal superior to 550 thousand CVE – which may be reduced to half if carried out of the municipalities of Praia, Sal and Boavista – and the creation of 10 direct jobs.
The State Budget also foresees the existence of an aggressive tax package through the increase of the taxation on alcoholic beverages, tobacco, consumption taxes and import rights.
Similarly to the recent Portuguese legal framework trend, the Cape Verdean State Budget for 2017 foresees the implementation of tax debt settlement scheme regarding all the debts whose payment expired on the last 31 of October as well all the tax enforcement procedures initiated until that date – such debts shall be paid in 12 or more installments.
The public debt for 2017 should reach the amount of 225.227,3 CVE, representing 121,5% of the GDP estimated for 2017, figured in 185.432,6 million CVE.