The private sector expressed this Thursday, February 1, concern over the existing tax burden in the country and proposed a reduction in the current tax rates.
Recently in Mozambique, the Value Added Tax (VAT) was reduced from 17% to 16% and the Corporate Income Tax (IRPC) was reduced from 32% to 10% in the areas of agriculture, aquaculture and public passenger transport.
Meanwhile, gathered in Maputo at a meeting for “Reflection and Planning for the Year 2023”, the Mozambican business class said that the recent measures are not yet satisfactory, adding that the necessary elements are being organized to propose to the Government further reductions, especially of the Corporate Income Tax for several other sectors.
“We note that some taxes need to be reviewed. The Government has taken a step, but it is not enough. We have taxes that overlap with some taxes, which [are] already high. We must therefore make a general reflection so that we can bring a concrete proposal to the State, which may or may not be accepted,” explained the president of the Fiscal Policy, Customs and International Trade Department of the Confederation of Business Associations (CTA), Félix Machado.
According to the leader, the high interest and tax rates make it difficult for any Mozambican businessman to grow. “How can a national entrepreneur grow with high interest rates? It is not possible,” he lamented.
Thus, and in this context, Félix Machado assured that the private sector will soon produce a document to be forwarded to the Government with the proposals for the reduction of taxes and fees that overlap with taxes.
The proposed laws to reduce VAT rates from 17% to 16% and the IRPC from 32% to 10% in the agriculture, aquaculture and urban transport sectors were approved in general terms in November last year by the Parliament.