The government has reaffirmed its commitment to consolidating public finances and reducing the budget deficit, noting that this strategy is essential to ensuring the sustainability of public debt and guaranteeing the state’s ability to meet its financial obligations, both domestically and internationally.
According to the Agência de Informação de Moçambique (AIM), this position was expressed by Finance Minister Carla Louveira during a dialogue session with the Confederation of Economic Associations of Mozambique (CTA), in which she emphasized that the ongoing reforms aim to address the economic challenges arising from internal and external factors that have constrained the performance of the national economy.
According to the minister, the government’s strategy is based on modernizing public administration and the management of state finances, keeping pace with digital transformation and enhancing the efficiency of financial management processes.
Carla Louveira assured that the government’s objective is not to increase the tax burden on taxpayers who already fulfill their obligations, but rather to broaden the tax base by integrating new economic actors into the tax system. “Our focus is not on collecting more from those who already pay taxes. We intend to broaden the tax base so that everyone contributes fairly, creating the conditions to gradually reduce the tax burden borne by the formal sector,” she stated.
In this context, the government is investing in the technological modernization of the tax administration and in integrating the digital economy and the informal sector into the tax base, with a view to strengthening tax equity, increasing transparency, and improving the capacity to collect public revenues.
The minister argued that this is the most sustainable solution for reducing, in the medium and long term, the tax burden on formalized businesses. At the same time, the government is implementing measures aimed at simplifying administrative procedures and reducing bureaucracy by replacing paper-based processes with digital solutions.
In the area of tax reforms, Carla Louveira revealed that the Ministry of Finance is leading the revision of various legal instruments, including the regulations governing the Value-Added Tax (VAT) Code, the Simplified Tax for Small Taxpayers (ISPC), and the Corporate Income Tax (IRPC) Code. As she explained, these reforms are being developed in coordination with the CTA and are part of the strategy to modernize the tax system.
Regarding delays in government payments to suppliers of goods and services, the minister acknowledged that this situation continues to affect companies’ cash flow and limit their ability to invest.
To address this challenge, the government is developing a strategy aimed at gradually clearing overdue payments and fulfilling its commitments to suppliers. At the same time, a review of the Tax Benefits Code is underway, with the goal of ensuring that the incentives provided contribute more effectively to promoting investment, job creation, and sustainable economic growth.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/07/economia/financas/governo-reforca-compromisso-com-a-reducao-do-defice-orcamental/
