The Government intends to broaden the tax base to stimulate the economy and promote conditions for the increase of investment in economic activities, with emphasis on the country’s industrialisation.
The information was shared on Monday, 28 November, in Maputo, by the Minister of Economy and Finance, Max Tonela, during a parliamentary hearing he held with the Commission for Constitutional Affairs, Human Rights and Legality (CACDHL) of the Assembly of the Republic (AR) on the tax package.
Cited by Noticias, Tonela explained that the proposed revision of the Personal Income Tax (IRPS) and Value Added Tax (VAT) codes comes within the framework of the tax reform that the government is carrying out to stimulate the economy.
“This revision aims to accommodate international practices that have been reviewed over time, but also to reflect some recommendations from the World Health Organisation (WHO),” said the minister, explaining that, as an example, some measures within the framework of the aforementioned taxes, which were established in the previous revision only for the brewing industry, have been expanded to all beverage industries.
Max Tonela said the Executive sought to make revisions in terms of the tax base, which is also to give more privileged treatment to consumers, “but without losing sight of what this tax focuses on, especially what luxury goods and goods that have a negative impact on people’s health are.
“Therefore, we bring a proposal to compensate the allocation of part of the revenue that comes from its application, to promote greater State investment in these sectors,” said Tonela.
