Mozambique: Almost 650 Cabo Delgado companies benefit from debt pardon – INSS

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Mozambique: Almost 650 Cabo Delgado companies benefit from debt pardon – INSS

1:39 CAT | 17 Aug 2023

FILE - For illustration purposes only. INNS headquarters in Cabo Delgado province. [File photo: Ministério do Trabalho e Segurança Social]

Almost 650 companies in Cabo Delgado, northern Mozambique, out of a total of 3,200, have signed up to the government pardon launched a year ago for fines and interest to mitigate the consequences of terrorist actions in the province, according to official figures.

At issue is a measure applied under decree 42/2022 of 17 August, which establishes the granting of forgiveness of fines and reduction of interest on arrears for taxpayers who owe money to the Compulsory Social Security System in the context of mitigating the effects of terrorism in Cabo Delgado province, the implementation of which ends this Thursday.

According to data from the Mozambican National Social Security Institute (INSS) consulted on Wednesday by Lusa, of the 3,200 companies, from all branches, only 641, with 4,515 workers, have completed the process.

The document also points out that from 17 August 2022 to 31 July 2023, the total amount forgiven by the National Social Security Institute for the 641 companies that adhered to the decree is 55.3 million meticais (€787,500) out of a total of 173 million meticais (€2.5 million) in debt, including fines and interest on late payments.

Cabo Delgado province has been facing an armed insurgency for almost six years, with some attacks claimed by the extremist group Islamic State.

The insurgency has led to a military response since July 2021, with support from Rwanda and the Southern African Development Community (SADC), liberating districts near gas projects, but new waves of attacks have emerged to the south of the region and in neighbouring Nampula province.

The conflict has already displaced one million people, according to the United Nations High Commissioner for Refugees (UNHCR), and caused around 4,000 deaths, according to the conflict registration project, ACLED.

Source: Lusa