Excessive tax breaks offered to large projects in Mozambique are coming to an end, the country’s minister for Planning and Development, Aiuba Cuereneia said Tuesday in Maputo.
Cited by Mozambican daily newspaper Notícias, the minister said that most of the projects in that position had another ten years to go and that after that tax benefits, as outlined in the law, would come to an end.
“Since 2007 we have had a new law that significantly reduces incentives for large projects, mainly in the mining area,” said Cuereneia, adding that previous projects, such as Sasol, Mozal and Kenmare Resources, were in the final stages of the tax benefits that they were given.
The first large project in Mozambique, the Mozal aluminium foundry, was authorised in 1997 and, at the time, the government reasoned that tax breaks for large projects, in the post civil war period, the Mozambican economy needed to offer incentives to attract foreign investors and kick start national production and put the country on the foreign direct investment radar. (macauhub)