The Confederation of Economic Associations (CTA) recently held a meeting with the Tax Authority (AT), where it argued that it is imperative to review the tax package in order to boost the business environment and encourage more investment in various areas that are important for the economy.
According to a statement, at the meeting the business community suggested changing the tax debt compensation scheme to include Value Added Tax (VAT) and invoices owed by the state to the private sector, as well as drawing up a study on the high tax burden and the mechanisms for mitigating it and broadening the tax base.
‘There needs to be a review of the costs not accepted for Corporate Income Tax (IRPC). We call for the private sector to be consulted in good time on legislative changes with tax, customs and international trade implications,’ he said.
In the note, the CTA suggested simplifying customs processes or procedures, speeding up the analysis of taxpayers’ requests and the respective responses, which include, among others, discharge certificates, VAT refunds, requests for offsetting credits and binding opinions.
‘Entrepreneurs have also requested harmonisation of the e-declaration and taxpayer portal platforms, as well as the issuing of circulars or service orders with instructions on procedures and clarifications relating to tax matters, similar to what the DGA – Directorate General for Customs – does in customs matters, in order to harmonise the understanding of the AT and taxpayers,’ he concluded.
The statement explained that the meeting was organised by the new Mozambican President of the Tax Authority, Elisa Zacarias, and that on that occasion the parties agreed to hold regular meetings on tax and customs issues.