“We currently have few companies paying high taxes. If we can reform this fiscal framework, we can expand the state’s tax base, and consequently, the government can collect more taxes, with more companies producing more and paying more,” said Onório Manuel, president of the CTA, during a meeting with the President of the Assembly of the Republic, Margarida Talapa, in Maputo.
The representative emphasized the necessity for the government to address the major barriers in the country’s fiscal policy.
“We want to base this reform on Mozambique’s economic condition, but with specific applicability to what we call rates and small rates,” he explained.
According to Onório Manuel, the average Value Added Tax (VAT) and Corporate Income Tax (IRPC) in Mozambique are high compared to other countries in the region, with VAT around 16% compared to the region’s 14%, and an IRPC of 32%, compared to 28%.
“When investors want to invest in Mozambique, they stop and conduct comparative studies of the tax burden in Mozambique against that of other countries. Those countries with a higher rate than others become less competitive, and we want to be a competitive country,” he concluded.
