Large projects in Mozambique provide 7 pct of total tax revenues

19 August 2013

Large projects operating in Mozambique provided 7 percent of total tax revenues of 55.6 billion meticals (US$1.85 billion) posted in the first half of the year, the Finance Minister said Friday in Maputo.

Speaking at the opening session of the 10th Tax Council in Maputo, Minister Manuel Chang said that tax revenues had risen by 38.6 percent against the same period of 2012.

“This result is satisfactory but the challenge remains for tax revenues to increase further in order to reduce the State Budget deficit which, at the moment, stands at around 33 percent,” said the minister.

The first large project to be set up in Mozambique was the Mozal aluminium foundry on the outskirts of Maputo and after that the natural gas fields in Inhambane province, explored by South African petrochemical group Sasol.

After that coal mining and natural gas projects were set up in the Moatize basin, in Tete province, and the Rovuma basin of the northern province of Cabo Delgado.

Last week Mozambique’s parliament approved a proposal to revise the 2013 State Budget in order to take into account the impact of floods at the beginning of the year, as well as expenses incurred with re-housing people, implementing infrastructure projects, the local elections of 20 November and other expenses.  (macauhub)