Mining is part of the informal sector that consumes 30% of the GDP and Amélia Muendane points to this sector as part of the solution to reach the increased target of 10% set for this year.
According to “O País”, for the 2022 financial year, the Mozambique Tax Authority (AT) expects to collect tax revenues 10% higher than last year and for this, the institution has set itself the challenge of seeking money for the State coffers in all productive sectors, including the informal sector.
“I have taken cognisance, so, you guys set out for the solution. There is the recipe. We have problems with mining, so let’s solve it. And the problem is not only with mining in Nampula. We have major problems with timber and with the Special Economic Zone,” said Amélia Muendane, president of the Tax Authority during a parade on Tuesday in Nampula city.
The Nacala Special Economic Zone, created by the Government in December 2007 was the first concept of special economic zones adopted to attract national and foreign investment by offering benefits such as exemption from payment of Value Added Tax (VAT) on imports of equipment and raw materials for their industries. However, there are businesspeople who deceive the tax authorities by enjoying these benefits, when they make imports to put directly into commerce, as denounced by the president of the Tax Authority.
“What we observe is that many times operators in the special economic zones, using the benefits they have, make imports and place products on the market without making the proper tax regularisation which means that it is a kind of smuggling because it imports, enjoys rights that it should not enjoy because it is going to place the products on the market. So, it is necessary that there is greater control of this movement that takes place at the level of the special economic zones. It is not only in Nacala. We have the same problem in Beira”, said the President quoted by “O País”.
On her first working visit to Nampula this year, the head of the institution responsible for forecasting and collecting tax revenues (domestic and customs taxes) thanked her team for their commitment which made it possible to exceed the target set for last year.
Data from the annual balance sheet of the AT show that in 2021 278.86 billion meticais were collected which corresponds to a gross realisation of 105.01%, with internal taxes representing 77% of that amount (204.03 billion meticais) and the target of growing by 10% this year is a challenge because of the “domino effect” of the COVID-19 pandemic.
“The big industries that produce for the imports that Mozambique consumes are also having problems securing a production. This results in an increase in the price level. Raising the price level reduces Mozambique’s capacity to import and by reducing Mozambique’s capacity to import it reduces our capacity to collect revenue,” he acknowledged.