Mozambique Amends VAT Norms to Boost Select Industries

(3 Minutes Read)

The amended VAT law exempts raw materials, intermediate products, parts, equipment, and components made by the national industries of sugar, edible oils and soaps, as well as goods and services provided within the scope of agricultural activity for the production of sugar cane intended for the industry.

The President of the Republic of Mozambique, Daniel Chapo, has promulgated and ordered the publication of the law amending the Value Added Tax (VAT) Code, a measure that aims to boost the sugar, edible oil, and soap industries.

A press release from the presidency sent to AIM on Thursday (23-05) states that Chapo decided in the exercise of the powers conferred on him by the Constitution, and having verified that the law does not contravene the Fundamental Law.

Approved by consensus of all four parliamentary benches, namely the ruling Frelimo party, Podemos, the largest opposition party, Renamo, the second largest opposition party, and the Democratic Movement of Mozambique, the third opposition party, the law allows the exemption to be extended until 31 December 2025.

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The amended VAT law exempts raw materials, intermediate products, parts, equipment, and components made by the national industries of sugar, edible oils and soaps, as well as goods and services provided within the scope of agricultural activity for the production of sugar cane intended for the industry.