Tax revenues grow in Mozambique

16 September 2014

Tax revenues in Mozambique totalled 100.700 billion meticals in the period from January to August, with just one third left to meet the target set out in the country’s Amended Budget, according to figures presented by the president of the Tax Authority (AT), Rosario Fernandes.

The president of the AT said that in the first eight months of the year cumulative performance stood at 100.54 percent based on good performance in the period between May and August, where average performance was 102 percent.

Noting that tax revenues posted annual growth of 30.28 percent, Fernandes said these figures showed that Mozambique is moving towards reducing it dependence on external funding of the state budget.

The target for this year is a tax revenue of up to 153.075 trillion meticals, according to the Amended Budget, following an adjustment from 147.372 trillion meticals mainly due to capital gains tax on the transfer of ownership of mining assets.

Cited by Mozambican newspaper O País, the AT president said that three tax collections units for large taxpayers would be set up in Matola, Pemba and Tete, in addition to those already open in Maputo, Beira and Nampula.

Large taxpayers currently account for 2.5 percent of all taxpayers but over 50 percent of all domestic taxes collected, which is expected to rise to at least 70 percent in the next two to three years. (macauhub/MZ)