The Minister of Economy and Finance, Max Tonela, assured last Friday, September 9, that the Government is committed to improving tax efficiency, as part of the economic recovery effort being implemented by the Executive.
“In the scope of VAT, we also intend to improve the level of efficiency in the administration of the tax and of the refunds management mechanism,” said Tonela.
The ruler was speaking during a meeting with representatives of private sector organisations, aimed at an exchange of views on the tax reforms contained in the Package of Economic Acceleration Measures (PAE) announced in August by the President of the Republic and head of the Government, Filipe Nyusi.
At the meeting last Friday, Max Tonela said that the government was preparing the documents of the proposed tax measures that it intended to implement, for submission to Parliament.
The fundamental changes, Tonela said, included providing tax incentives in key economic areas, such as agribusiness and construction, via incentives to be included in the Specific Consumption Tax (ICE).
Speaking at the meeting, the president of the Confederation of Economic Associations of Mozambique (CTA), Agostinho Vuma, advocated the concentration of tax policy in the Ministry of Economy and Finance to reduce the proliferation of decision-making centres on taxes and fees.
“It is necessary for tax policy to be centralised in the Ministry of Economy and Finance reducing the prerogatives of sector institutions to rates,” and removing these entities’ tax powers, Agostinho Vuma said.
The economic recovery measures announced by the President of the Republic in August include a reduction of one percentage point in the VAT rate, from 17 percent to 16 percent, and lowering the Corporate Income Tax (IRPC) rate from 32 percent to 10 percent in some economic sectors.
In total, there are 20 measures announced by Filipe Nyusi, with the aim of boosting growth in the face of the impact of the covid-19 pandemic, the Russia-Ukraine war and terrorism in the northern region of the country.