The Confederation of Economic Associations of Mozambique (CTA) stated this Wednesday (12) that the national tax system has become an obstacle to economic growth and called for structural reforms to promote tax justice, competitiveness, and sustainable investment.
“Our tax system is heavy, complex, and disconnected from the reality of an economy that wants to compete. We need a smart, predictable, and fair tax reform that broadens the tax base and stimulates productive investment,” said CTA President Álvaro Massingue at the opening of the 20th Annual Private Sector Conference (CASP), held in Maputo.
The event, considered the country’s largest public-private dialogue forum, brings together over 2,000 participants, including entrepreneurs, government representatives, and development partners, running until Friday. Projects valued at approximately 95.8 billion meticais (1.5 billion USD) are under discussion.
In the presence of President Filipe Nyusi, Massingue criticized the heavy tax burden, describing it as one of the main causes of the “strangulation” of Mozambique’s economy. “Reforming the tax system is not just about lowering rates. It is about creating a model that rewards merit, encourages production, and benefits those who invest and employ. An economy suffocated by taxes and bureaucracy does not grow,” he stated.
The business leader highlighted Value Added Tax (VAT) as a key obstacle, pointing to delays in refunds and the lack of effective compensation mechanisms. “Many pay without receiving reimbursement. Others, even when entitled, wait months or years to receive it. This is unsustainable,” he said. Regarding Corporate Income Tax (CIT), currently set at 32%, Massingue advocated for differentiated rates according to company size and performance, emphasizing that the current model “ignores the specificities of small and medium enterprises.”
CTA also proposed reviewing tax rates applied to the health sector, particularly on medical equipment and drug registration, arguing that current charges increase service costs and limit public access to essential care.
On the administrative front, entrepreneurs again emphasized digitalization as a tool to combat bureaucracy, reduce costs, and enhance transparency. “Digitalization is liberation. It reduces corruption, increases efficiency, and restores confidence in the economy,” Massingue said, praising the recent decision to unify economic inspections, provided it is accompanied by a “new culture of public management.”
The CTA leader also stressed the importance of replacing a punitive approach to inspections with ethical and pedagogical methods. “Public servants should facilitate, not obstruct. Yes, inspect, but with ethics, pedagogy, and transparency,” he underlined.
The organization also highlighted the need for legal certainty to attract investment, advocating for faster judicial processes and effective enforcement of existing laws. “Mozambique does not need more laws. It needs to enforce the ones that already exist. The unpredictability and slowness of the courts drive away investment and paralyze the economy,” he warned.
In his speech, Massingue emphasized that the country has vast natural resources and human capital but continues to face a “potential versus results paradox.” “It’s not a lack of talent. It’s a lack of systems. It’s not a lack of resources. It’s a lack of reforms. What is missing is not knowing what to do, but deciding to do it,” he concluded.
Over the three-day conference, bilateral sessions are scheduled with representatives from the European Union, the United Arab Emirates, the African Continental Free Trade Area, and Brazil. The “Market Place” platform will also be held, facilitating meetings to identify business solutions and opportunities among stakeholders in production, import, distribution, and raw material supply chains.
The 20th edition of CASP aims to strengthen commitments between the state and the private sector to revitalize the national economy through reforms that enhance competitiveness, promote investment, and ensure sustainable, inclusive, and resilient growth.
Text: Felisberto Ruco
