The government of Inhambane province has announced that the problems of fraud and tax evasion, coupled with the weak taxation capacity of the mining sector and the transfer of tourism assets and shares from abroad, constitute a major challenge for the collection of public revenue in that southern region of the country.
The Secretary of State’s representative in the province, Ricardo Nhacoongue, explained that Inhambane is a place that contains natural and cultural resources, with enormous potential for economic growth and social progress, but which lacks a strategic taxation system that can boost sustainable development.
Speaking during a lecture on the “Challenges in Taxing Tourism for the Development of Inhambane”, he said there was a need for more co-operation and exchange of knowledge between all the parties that make up the local private sector.
“We face challenges related to mobilising resources to achieve Mozambique’s desired economic and financial sustainability. However, we must establish an equitable and effective tax system that promotes synergies for attracting investment, a fundamental factor for generating jobs, with a view to transforming potential into real wealth,” he said.
Quoted by the newspaper Noticias, Nhacoongue emphasised that “good opportunities promote a considerable business environment and attract companies that provide economic development, but we must ensure that activities are taxed fairly and that the benefits are shared equitably”.
“We must combat bureaucratism, tax evasion, smuggling and corruption, problems that continue to prevail in the collection of revenue in the country,” he concluded.
