Business leaders in Mozambique advocate for changes to monetary and fiscal policies

Mozambique's Tax Policy Reform Proposed by CTA President

Onório Manuel, President of the Confederation of Economic Associations of Mozambique (CTA), has proposed a tax policy reform aimed at making the country more competitive for attracting investors.

In a meeting with the president of the Republic Assembly, Margarida Talapa, in Maputo, Onório Manuel emphasised the importance of being a competitive country. He believes that lowering tax rates could be a key factor in achieving this goal.

According to Onório Manuel, the current tax structure in Mozambique is not burdensome for many companies. He stated that few companies are paying high taxes, a fact that could potentially be exploited to make the tax system more equitable.

The specific taxes that Onório Manuel is suggesting to lower in the current context were not specified. However, he did mention that the reform is applicable to the current stage of taxes and small taxes.

The reform proposal is based on the economic condition of Mozambique. Onório Manuel highlighted that comparing the tax burden in Mozambique with that of other countries is a practice by potential investors. He pointed out that high tax rates in Mozambique can make the country less competitive for investors.

Onório Manuel also suggested reforming the fiscal framework to broaden the tax base of the State. He believes that more companies producing more and paying more taxes is a potential outcome of the proposed reform.

However, Onório Manuel did not discuss the potential impact of lower taxes on the state's infrastructure or public services. Nor did he provide details on how lowering taxes would be balanced with the state's revenue needs.

The Government, according to Onório Manuel, could collect more taxes if the fiscal framework is reformed. He did not specify which minister or official is responsible for initiating the tax policy reform in Mozambique.

It is worth noting that the average Value Added Tax (VAT) in Mozambique is 16%, higher than the regional average of 14%. Similarly, the average Corporate Income Tax (CIT) in Mozambique is 32%, higher than the regional average of 28%.

Onório Manuel's statements come at a time when the Mozambican economy is grappling with various challenges. He emphasised the need for the Government to address major obstacles in the country's fiscal policy, without elaborating on the specific obstacles.

In conclusion, Onório Manuel's proposal for a tax policy reform aims to make Mozambique more competitive for investors. While the specifics of the proposal are yet to be detailed, it is clear that the reform is intended to address the high tax rates in the country and broaden the tax base. The Government's response to this proposal will be crucial in shaping the future of Mozambique's fiscal policy.

Business leaders in Mozambique advocate for changes to monetary and fiscal policies