Mozambique: AfDB support to end-2019 capped at $81m due to excessive debt
The Mozambican Tax Authority (AT) is so far this year owed just over 342 billion meticais (EUR 4.7 billion / US$5.6 billion, at current exchange rates) in unpaid tax. This is due to corruption in the institution, tax evasion and taxpayers’ financial incapacity.
The president of the AT, Amélia Nakhare, quoted yesterday by the newspaper Notícias, said that tax debt amounted to 359 billion meticais (EUR 4.9 billion), of which 161.9 million meticais (EUR 2 million) had been paid.
“This situation stems from factors such as human error, tax evasion, corruption, postponement of payments and lack of resources,” Nakhare said. The economic recession in Mozambique had reduced the ability of many taxpayers to pay taxes.
The AT president said that 1,549 taxpayers ceased economic activities in 2016 unable to pay the tax authorities, and 220 postponed the payment of the Tax on the Income of Collective Persons (IRPC).
Nakhare backed the improvement of inspections and audits as a way of strengthening the AT’s revenue collection capacity. “The success of these goes hand in hand with joint action in the fight against bureaucracy, which corruption uses to spread its tentacles,” she added.Source: Lusa