Maputo, Mozambique, 03 Nov – The Mozambican parliament Thursday approved a legislative proposal reducing the country’s basic customs tax on countries from the Southern Africa Development community (SADC) from 25 percent to 20 percent, officials said.
The proposal was presented in order to comply with the principles of liberalization of international trade established by the World Trade Organization (WTO).
Currently, in the countries that make up the SADC, the basic customs tax is already 20 percent.
Mozambique’s finance minister, Manuel Chang, said that he expected the effects of the proposal to be positive, as reducing customs taxes would increase income as customs taxes would be paid voluntarily, thus reducing tax evasion.
Along with these measures, development of institutional capacity in terms of human resources, information technology, simplification of procedures and measures to encourage trade also led to increased efficiency of customs services and added to the amount of tax collected, Chang said.
He said that the new general tax would be subject to negotiation between SADC member countries in order to establish a common tax to be applied by the future Customs Union of the organization to countries outside the community. (macauhub)