( minutes read)
The apex body of business in Mozambique, the Confederation of Business Associations of Mozambique (CTA), advocated broader tax reductions to boost economic recovery from the Covid-19 pandemic and the war in Ukraine.
CTA’s position is part of the list of proposals that the organisation drew up following the Package of Measures for Economic Acceleration announced in August by the president of Mozambique, Filipe Nyusi.
The Mozambican business fraternity urged reducing VAT from 17% to 16%, included in the SAP, should also apply to special rates of this tax applied to other goods and services, such as electricity and water. It also proposes the reintroduction of the VAT exemption for all products in the basic food basket. This it feels would relieve the household of hardships they are facing due to higher cost of living.
CTA also advocated that VAT exemption in agriculture should be extended to the entire agricultural sector and should include the bakery industry. Urban passenger carriers should benefit from exemption from payment of the company tax to attract greater formalisation of this sector.
Read also:
https://trendsnafrica.com/port-of-beira-of-mozambique-records-lower-cargo-handled/
https://trendsnafrica.com/mozambiques-growth-prospects-intact/
https://trendsnafrica.com/the-us-to-support-mozambique-to-rebuild-the-districts-hit-by-terrorism/
On tax incentives for new investments in key sectors made in the next three years, CTA defended extending these incentives to investments already implemented and to areas affected by cyclones and armed attacks in Cabo Delgado province. To simplify procedures for the repatriation of capital, the measure should be extended to the flow of capital entering the country, CTA advocates.
