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Private Sector Concerned About High Tax Burden and Public Debt

Private Sector Concerned About High Tax Burden and Public Debt

The private sector has expressed concern about the high tax burden, the collection of taxes without legal coverage and non-compliance with measure 12 of the Economic Acceleration Package (EAP), which calls for the government to purchase national products and reduce Value Added Tax (VAT).

Speaking during the 10th Business Environment Monitoring Council (CMAN) on Wednesday (17), Agostinho Vuma, president of the Confederation of Economic Associations (CTA), said that one of the critical issues negatively influencing entrepreneurs is the difficulty of accessing finance, arguing that this is due to the country’s high level of indebtedness.

“The country’s debt capacity is currently limited, affecting the financing of the growth and development of the economy. We want to encourage the government to continue implementing measures aimed at consolidating the revaluation of our exports,” he emphasised.

According to Vuma, the application of illegal taxes reduces the chances of investors entering the country, especially those charged by the energy sector.

“Investors in remote areas are obliged to make agreements with Electricidade de Moçambique (EDM) for the supply of electricity and, as part of this contract, there is a fee that they are obliged to pay to the Ministry of Mineral Resources and Energy (MIREME). This reflects a duplication of fees, given that the company already pays EDM, a company under the tutelage of MIREME,” he explained.

Reacting, Prime Minister Adriano Maleiane said that the government was committed to creating conditions aimed at boosting the economy and improving the business environment, designing reforms that would help make the country more attractive to national and foreign investment.

“In 2022, within the scope of the SAP, we carried out actions such as revising the Investment Law, the Commercial Code and various social policy instruments, in order to ensure that they were adapted to the new demands of international trade,” he pointed out.

The 10th Business Environment Monitoring Council (CMAN) is an event organised by the Confederation of Economic Associations in partnership with the Executive.


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