Mozambican government and employers discuss VAT for agriculture

13 August 2012

Teams from the Mozambican Tax Authority (AT) and the Confederation of Economic Associations of Mozambique (CTA) are reviewing value added tax (VAT) for the agricultural sector, according to Mozambican daily newspaper Notícias.

The newspaper added that this review was happening at a time when the private sector considers that despite the tax benefits offered by the government to drive the agricultural sector, VAT remains an unaffordable cost for the sector.

Kekobad Patel, who is responsible for taxation issues at the CTA, said that the technical teams involved in the process were currently still analysing VAT on agriculture that the VAT review process would later cover all business sectors.

The tax incentives for agriculture approved by the government include a 50 percent tax discount on diesel, a reduced 10 percent rate for corporate tax and VAT exemption on the sale of goods and services within Mozambique for agricultural, silvicultural and livestock activities.

The government also decided to exempt VAT on imports of raw materials needed to manufacture feed for animals for human consumption, including maize and soy. (macauhub)