Maputo, Mozambique, 23 March – Mozambique’s tax system may be reviewed considering that the increase in the number of taxpayers and the expansion of economic activities have provided the country with a more sustainable revenue base, the president of the Tributary Authority (AT), Rosário Fernandes said Tuesday in Maputo.
During the signing of a memorandum of understanding to promote cooperation between the Authority and the Mozambican Confederation of Economic Associations (CTA) on tax issues, Fernandes said that the number of taxpayers had been increasing, and at 31st December, 2010 over 1.27 million were registered, 36,000 of which were companies.
Cited by Mozambican newspaper Notícias, Fernandes noted that in the first two months of this year alone, the Authority had registered 44,300 taxpayers, of which 2.5 percent were companies and other collectives.
According to Notícias, the private sector has called for the need to expand the tax base by integrating more taxpayers, with a consequent reduction of the current tax burden, which is considered to be one of the highest in Southern Africa.
The memorandum of understanding signed by the CTA and the Tributary Authority also includes development of mechanisms to boost inter-institution cooperation in training in and dissemination of tax legislation and the training of new business owners on tax matters.
The two institutions also committed to informing economic agents across the country about the need to meet their tax obligations in line with the fiscal calendar. (macauhub)