Mozambican Tributary Authority calls for creation of Sovereign Fund with capital gains revenues

4 September 2013

The Mozambican Tributary Authority (AT) has proposed a Sovereign fund or a Macroeconomic Stabilisation Fund be set up using revenues from capital gains taxes charged on the sale of Mozambican assets by foreign companies, Mozambican newspaper O País reported.

In a statement published in Maputo, the AT said that good international practices recommend that revenues from capital gains taxes be used to set up one of these funds or to be channelled into an investment bank in order to feed the domestic economy rather than funding public expenditure, as has so far been the case.

According to the newspaper, the AT’s statement also suggested approval of rules for applying capital gains revenues.

“No decision can be made lightly and a public debate is needed, involving civil society, which will end with a legislative proposal drawn up by the proper authorities, to drive construction, in an appropriate timeframe, of an intelligent instrument to manage those resources,” said the statement published by the Tributary Authority. (macauhub)