Mozambique: VAT re-imposed on sugar, soap and cooking oil
in file CoM
In July of this year, the national director of economic and financial studies at the Ministry of Economy and Finance, Vasco Nhabinde, revealed that the proposed local content law had already been analyzed by the Economic Council and that it would be submitted to the Council of Ministers for its analysis and approval. But after four months, no information regarding the receipt or approval of the document by the Council of Ministers had been released.
The PCA of the National Hydrocarbons Company (ENH), Omar Mithá, says he does not understand the reason for the delay in the approval of the law. “We think that there has been more than enough time to harmonize the themes contained therein. It is time for this law to pass, because as we speak, there are already contracts to be signed, while we are already talking about projects that are being implemented, so approval is urgently needed,” he said.
Mithá says he does not know what is holding back approval of the document, and that it is time to apply pressure.
“At this moment it is difficult to say what the specific reason is, because I am reminded that the harmonizing of the text has already been done. We will initiate contacts and measures so that, together with the CTA, we apply pressure. This is the right word: let us apply pressure on those who rightfully take this law where it should go, to be approved,” he said.
Mithá was speaking at the end of his visit to the Confederation of Economic Associations (CTA), where he met the institution’s Executive Board.
Florival Mucave, president of CTA’s Hydrocarbons and Energy Department, journalists that the process was taking longer than expected and that the private sector had a major stake in approving the document.
“The approval of the local content law is paramount, not only for the national business, but also for the creation of jobs and for the development of the national economy. Therefore it is a very important point for the CTA, and we are working hard to have the law in place by the middle of next year,” he said.
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