Mozambique’s income tax collections rose 4% in 2024

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Mozambique’s income tax collections rose 4% in 2024

12:21 CAT | 21 Mar 2025

File photo: Lusa

Income tax revenue from workers and companies increased 4% to €2.226 in 2024, above the government’s forecast, in spite of economic growth falling short of expectations.

According to data from the State Budget implementation, the 155 billion meticais (€2.226 billion) represents almost 105% of the annual forecast, accounting for 45% of all tax revenue in 2024 in Mozambique.

Of Personal Income Tax (IRPS), 62,639 million meticais (€900 million) was collected, 96% of the annual target and a 7% growth compared to the same period in 2023.

This is “justified by the constant control of withholdings at source and payments to tax departments by companies and by the Civil Service resulting from the implementation of the single salary scale”, reads the document from the Ministry of Finance.

Corporate Income Tax (IRPC), related to companies, amounted to 91,985 million meticais (€1,321 million), representing 112.7% of the annual forecast and a growth of 2.1% in the space of one year.

In addition to the taxation of income, there is the Special Tax on Gaming, which brought in 387.8 million meticais (€5.5 million) in 2024.

The Mozambican economy grew by just 1.9% in 2024, almost a third less than expected, due to the impact of the post-election demonstrations and protests in the country, said the Minister of Finance, Carla Loveira, at the end of February.

The economy fell by 4.87% in the fourth quarter of 2024, year-on-year, a period marked by post-election protests in the country, according to government data.

“The Gross Domestic Product at market prices (GDPmp) showed a negative variation of 4.87% in the fourth quarter of 2024, when compared to the same period in 2023,” according the Ministry of Finance report.

In addition to the impacts of climate change, with severe droughts and cyclones ravaging the country, the document also acknowledges “the negative impact of post-election demonstrations recorded in the last quarter of 2024”, which “affected economic and social activities”.

Mozambique has been experiencing a climate of social unrest since the general elections of October 9, aggravated by the announcement of the voting results, with demonstrations, street protests, barricades, roadblocks, vandalism and destruction of public facilities and businesses, looting and clashes with the police that have caused more than 300 deaths.

The Mozambican government estimated that the country’s GDP would grow to 1.536 trillion meticais (around €23 billion) in 2024, which would correspond to a 5.5% increase.

Source: Lusa