Mozambique’s Tax Authority studies impact of VAT on economy

3 January 2018

The Mozambican Tax Authority (AT) is conducting a study to determine the impact of the current Value Added Tax (VAT) on the state’s revenue structure and on the viability of companies’ activities, the AT’s president said.

Amélia Nakhare, quoted by Maputo newspaper Notícias, said a study intended to reformulate VAT is being carried out, assessing a variety of scenarios, and it is therefore too early to say “what will be the final profile of the document, as it presents different scenarios and does not exclude the possibility of a downward review of the current rate of VAT.”

The study, which will be published before the end of 2018, comes at a time when the private sector, represented by the Confederation of Economic Associations of Mozambique (CTA), regards the 17% rate applied to VAT as too high.

From a private sector perspective, the current VAT rate jeopardises the normal functioning of companies at a time when the government is making efforts towards economic recovery. (macauhub)