The Government approved this Tuesday (2) a draft law aimed at reducing the tax burden on electric and hybrid vehicles intended for passenger transport, with effects expected from 2026. According to the Executive, the measure is part of efforts to promote sustainable mobility and adapt to the ongoing energy transition.
According to Lusa, the proposed amendment to the Specific Consumption Tax (ICE) rates, approved during a Council of Ministers session, will be submitted to the Assembly of the Republic and, among other aspects, extends the 2025 rates for the 2026–2027 biennium. In addition, it eliminates exemptions considered incentives for physical investment and reviews other exemptions related to investment in manufacturing units, already covered by the Fiscal Benefits Code.
“The document reduces the tax burden on electric or hybrid automobiles and on vehicles transporting ten or more passengers. It also introduces new tariff codes, aiming to align with the country’s mobility and transport policy,” explained Government spokesperson Inocêncio Impissa during the press conference following the meeting. Impissa further stated that the legislative package revises how ICE revenue is distributed among different product categories, allowing for a reallocation that considers new fiscal priorities.
The Executive justifies this approach with the global progress in introducing environmentally friendly vehicles, noting that Mozambique has also begun to see electric vehicles in circulation, including minibuses, as viable models for urban transport. “Traditional banking is declining in favor of mobile wallets, and many transactions go untaxed and unrecorded,” he said, adding that the new tax rules should also ensure fairness in the contributory system.
The measure is part of the Energy Transition Strategy (ETS), which aims to begin decarbonizing the transport sector in the metropolitan area of Maputo by 2030. The progressive replacement of fossil fuel vehicles with gas and electric models is underway.
With an estimated investment horizon of around $80 billion (5 trillion meticais) by 2050, the plan foresees that by 2030, 15% of the public transport fleet in the capital will use cleaner energy sources. The target rises to 50% between 2030 and 2040, with expansion to other areas of the country also planned.
Source: Diário Económico
