Mozambican government’s proposed law on VAT exemption well received by poultry farmers

22 September 2011

Maputo, Mozambique, 22 Sept – The Mozambican government’s proposed law to exempt from VAT raw materials used for the production of animal feed for animals for human consumption was well received by poultry farmers, said that chairman of Mozambique’s association for the sector.

However, the chairman of the Mozambican Association of Poultry Farmers, Emílio Tinga, told newspaper Notícias that the association’s poultry farmers had expected much more, specifically for VAT exemption to be extended to the entire production process, including the import of equipment.

Noting the systematic delays in repayment of VAT, Tinga said that the proposed law, on taking into consideration only raw materials for producing feed, would not be enough to have the desired impact, specifically a drop in the price of feed and the resulting increase in competitiveness of the sector.

The chairman of the association gave as an example feed importers that have a lot of capital tied up in VAT and this means they have to make use retail bank loans at high interest rates to keep operating.

Rui Brandão, of Higest Moçambique, told Notícias that the measure would make the company more competitive and increase its capacity to reinvest in feed production and, thus, create more jobs. (macauhub)