Capital gains ensure tax revenue target in Mozambique in 2019

3 February 2020

The accounting of US$880 million in gains from the sale of the Anadarko Petroleum group’s stake in the Area 1 block of the Rovuma basin allowed the target set for the collection of taxes by the Tax Authority (TA) of Mozambique was reached and even exceeded, said the spokesman for the institution.

Fernando Tinga, quoted by newspaper A Verdade, said that, excluding that extraordinary income, the Tax Authority failed to reach its target of 244 billion meticais in taxes, and collected just 222 billion (US$3.440 billion).

The spokesman also said that the result was due to the “fragile economic and financial situation in Mozambique in 2019, which had a great impact on the level of the performance of the economy and consequently the level of revenue collection.”

Adding the capital gains revenue, which represented 54.1 billion meticais, the Tax Authority of Mozambique collected tax revenues of 288.6 billion meticais in 2019, Tinga said.

The spokesman of the Tax Authority of Mozambique indicated that 75.6% of revenues (218.2 billion meticais) were collected by the Directorate General of Internal Taxes and that the Directorate General of Customs had a contribution of 24.39% (70.4 billion meticais).

The target tax collection for 2020 is 261.0 billion meticais, said the Tax Authority spokesman. (macauhub)