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Zambézia: Withholding Tax Policy Increases Tax Collection by Over 60%

Zambézia: Withholding Tax Policy Increases Tax Collection by Over 60%

During the first quarter of this year, the implementation of the tax retention policy in Zambezia province resulted in a significant 61.36 per cent increase in tax collection. Figures released by the Mozambican Tax Authority (AT) show that tax revenues totalled 994,500 meticals, exceeding the 591,200 meticals initially forecast, according to the newspaper Noticias.

According to Ambrósio Orubale, provincial delegate of the AT, the reforms to the tax codes facilitated the inclusion of more non-governmental organisations (NGOs) and an increase in the number of employees, thus broadening the tax base. This growth was mainly driven by domestic taxes, which accounted for more than 94 per cent of the total collected, including Personal Income Tax (IRPS) and Corporate Income Tax (IRPC).

In addition, “the positive performance of customs duties, especially in the districts of Morrumbala, Derre and Milange, in collaboration with Malawi, also contributed to the robust results. Despite the challenges faced, such as the inoperability of the Port of Pebane, there are measures to be implemented to improve tax revenues, including initiatives with the Ministry of Transport and Communications,” said Ambrosio Orubale.

Cristina Mafumo, director of the AT Coordinating Council session in Zambézia, emphasised the importance of raising taxpayers’ awareness of tax regularisation, highlighting the Derre district as an example of a surplus in revenue collection. This strategic planning aims not only to increase efficiency in tax administration, but also to strengthen citizen participation in the fulfilment of tax obligations.


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