The government estimates to collect this year 7.2 billion meticais (111.6 million dollars) in revenues from taxes on mining and oil production. Of the total, 5.8 billion meticais (89.9 million dollars) correspond to mining production and 1.3 billion meticais (20.1 million dollars) to oil production.
According to the budget proposal already approved by Parliament, of the amount collected, 722 million meticais (11.2 million dollars) is expected to be transferred to development programs for communities hosting the exploration projects.
“It is on the total amount that a 10% rate is deducted, intended for the development of the provinces, districts, and local communities where the mining and oil exploration enterprises are located,” the document cited by Lusa recalls. According to the 2025 Economic and Social Plan and State Budget (PESOE), “of the 722 million meticais, 523.7 million meticais corresponding to a 7.25% rate will be directed to the provinces, and the remaining 198.7 million meticais, equivalent to 2.75%, will go to the communities, in accordance with current legislation.”
It is also added that “this tax system is part of an effort to ensure alignment with international taxation practices in the sector and to promote responsible fiscal management of natural resources.” In 2023, Mozambique decided to allocate 10% of tax revenues from mining and oil production to structural projects in the provinces and to support local communities.
The measure is established by a decree that recognizes the “need to regulate the criteria for allocation and management of the percentage of revenues intended for the development of the provinces, districts, and local communities where mining and oil exploration enterprises are implemented.”
The decree defines that 7.25% of the revenue collected from the Mining Production Tax and the Oil Production Tax will be allocated to the provinces and districts, “namely for structural projects,” and 2.75% for the “local communities.”
The projects involve areas such as education, health, agriculture and aquaculture, and may cover additional sectors such as construction of roads, bridges, acquisition of means of transport, and improvement of water and sanitation systems.
The draft Economic and Social Plan and State Budget law for 2025 is estimated at 512.7 billion meticais (7.9 billion dollars). Among the main macroeconomic assumptions underlying it are a GDP growth of 2.9% and an average annual inflation rate of around 7%.
Projections also indicate revenues of 385.8 billion meticais (5.9 billion dollars). The PESOE is a document that defines the main economic, social, and financial policy objectives of the State, also identifying the forecast revenues to be collected, actions, and resources needed for its implementation.
Source: Diário Económico
