Mozambique pays 260 of 1,322 VAT refund claims in nine months

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Mozambique pays 260 of 1,322 VAT refund claims in nine months

9:44 CAT | 26 Nov 2025

File photo: DW

Mozambican tax services received 1,322 VAT refund applications this year, totalling more than 41,887 million meticais (€563.4 million), but only 260 had been paid by the end of September, according to official data.

According to data from the Ministry of Finance on budget execution, refunds made during this period amounted to only 4,695.7 million meticais (€63.2 million) of the total applications received.

“260 applications were paid, representing a decrease of 35.2% compared to the same period in 2024,” the document states. It adds that 105 of these refunded applications, worth 173.6 million meticais (€2.3 million), were submitted by diplomats.

A Value Added Tax (VAT) refund is when the State returns to a taxpayer the VAT they paid on purchases in amounts exceeding the VAT they collected on sales during a specific period.

The president of the Confederation of Economic Associations (CTA) of Mozambique, Álvaro Massingue, stated on 12 November that tax reform is a priority, given the scenario of taxes that cause the “strangulation” of the Mozambican economy and businesses, citing delays in VAT refunds as an example.

“Our tax system is heavy, complex and misaligned with the reality of an economy that wants to compete. We need a smart, predictable and fair tax reform that broadens the tax base and stimulates productive investment,” said Massingue at the opening ceremony of the 20th Annual Private Sector Conference (CASP).

“Reforming the tax system is not just about lowering rates. It is about creating a model that allows merit, encourages production and rewards those who invest and employ. An economy suffocated by taxes and bureaucracy does not grow. An economy that frees investment multiplies jobs, incomes and revenues,” he added during the same speech, in the presence of the President of the Republic, Daniel Chapo.

Álvaro Massingue said that Value Added Tax (VAT) “is today one of the strangulations” of the economy and businesses: “Many pay without the right to a refund. Others, even with the right to a refund, wait months or years to receive it. The Corporate Income Tax (IRPC), set at 32%, ignores the differences between small, medium and large companies. It is urgent to introduce differentiated levels adjusted to size and sector performance.”

Source: Lusa