The Government approved this Tuesday (2), during a Council of Ministers session, a legislative package that expands the tax base to cover digital economy transactions, including the use of mobile wallets and electronic platforms. The draft laws now move to parliamentary consideration, according to Lusa.
According to the Government spokesperson, Inocêncio Impissa, the proposed amendment to the Value Added Tax (VAT) Code aims to ensure that digital operations also contribute to state revenue, eliminating tax distortions across different sectors of the economy.
“The proposal seeks to establish parity between tax settlement and deduction rights, modernize and simplify electronic invoice submission procedures, and reform the taxation regimes currently in force in the country,” he explained.
In the same session, the proposed amendment to the Personal Income Tax (IRPS) Code was also approved, which provides for the taxation of activities within the blue economy and modifies the criteria for defining tax residence, thereby strengthening global taxation for those primarily residing in Mozambique.
Impissa stated that the Government decided to advance these measures after observing the exponential growth of digital commerce and the increase in electronic transactions, many of which remain outside the reach of the tax authorities. “Electronic transactions dominate a large portion of current commerce, both domestically and internationally. However, the current legal framework does not allow for taxing many of these operations. With these draft laws, the Government aims to ensure that all entities, individual or corporate, contribute fairly to the economy,” he said.
The measure also responds to the growing substitution of traditional banking with mobile wallets, whose transaction volumes continue to rise, but which, in many cases, escape tax oversight.
According to data from the Bank of Mozambique, the number of digital wallet agents rose to 351,921 in the first quarter of 2025, covering all 154 districts of the country. This represents 1,817 agents and 110 accounts per 100,000 adults, a significant increase compared to the 315,005 agents recorded at the end of 2024 and the 350 agents counted in 2019.
Impissa acknowledged that there is control over some electronic operations, but without adequate legal instruments, it is not possible to collect taxes on certain transactions. “These rules will allow Mozambicans to benefit from the advantages arising from the various contributions, strengthening fiscal equity and modernizing the national tax system,” he concluded.
Source: Diário Económico
