Lawyer Malaika Ribeiro and economist Kekobad Patel warned on Wednesday (26) of the urgent need to restructure Mozambique’s Tax Authority technically and structurally, taking into account the challenges of tax reform and the broadening of the tax base. Both took part in a colloquium organised in honour of Administrative Court judge Aboobacar Changa, where they discussed the various issues affecting the country’s tax system.
Malaika Ribeiro emphasised that, rather than a legislative overhaul, the focus should be on fighting corruption, improving tax processes and resolving historical problems, such as the slow response to taxpayers and the delay in tax refunds, especially in relation to Value Added Tax (VAT).
For the lawyer, the modernisation of the Tax Authority is essential to guarantee a more efficient and attractive tax system, capable of encouraging compliance with tax obligations and combating tax evasion.
‘As long as the tax system is not simplified and efficient, it will be difficult to achieve the expansion of the tax base,’ she said.
Malaika Ribeiro also advocated the creation of a single portal for tax compliance, in order to facilitate the submission of returns and avoid the current fragmentation between various electronic declaration systems, such as the Taxpayer Portal for VAT and ISPC and the e-declaration system for other taxes.
For his part, Kekobad Patel pointed out that although the computerisation of tax management is one of the ways to leverage the tax base, it is essential to go beyond digitalisation. For him, most informal economic activities are still outside the tax system, and it is necessary to establish strategies to bring these sectors into the formal tax system.
‘It’s important that everyone who carries out economic activities in the country realises their obligation to pay taxes,’ argued Patel.
The colloquium in honour of Aboobacar Changa was not only an opportunity to reflect on the country’s tax challenges, but also a space to remember the judge counsellor’s fight to promote justice and transparency in tax processes. During the event, Changa called on younger people to continue working to improve administrative and judicial processes, especially with regard to taxation.
The president of the Administrative Court took the opportunity to reiterate the need for a reform of tax procedural legislation, pointing out that a reform proposal was submitted to the Ministry of Justice four years ago, but has yet to receive any concrete answers.
The experts present agreed that the restructuring of the Tax Authority, combined with the modernisation and incorporation of informals into the tax system, are fundamental steps towards strengthening tax collection and making the system fairer and more efficient.
Source: O País
