Cabo Delgado entrepreneurs ask for tax debt write-off and reduction

Login

Register

http://www.clubofmozambique.com/

Cabo Delgado entrepreneurs ask for tax debt write-off and reduction

3:54 CAT | 14 Nov 2022

Photo: Zumbo FM

Entrepreneurs in Cabo Delgado this Friday expressed to visiting Prime Minister of Mozambique, Adriano Maleiane, concerns regarding tax debts and the material and economic damage that private companies had suffered during the insurgency, making it difficult for some companies to resume economic activities in the province.

Speaking at the meeting with the Mozambican prime minister in Pemba, President of Cabo Delgado Provincial Business Council Mamudo Irage suggested granting a total forgiveness of tax debts and a tax reduction.

“The private sector in Cabo Delgado, in the period from 2017 to 2022, in the districts affected by terrorism, failed to comply with their tax obligations, and after wards were no longer able to carry out their activities,” Irage noted. “On the other hand, they did not declare bankruptcy, and now they want to resume activities. We suggest , Your Excellency, that a total forgiveness of the tax debt be granted, along with a form of encouragement, namely, reducing taxes in the 2023/2026 period and also exempting all districts previously affected from paying for energy for a period of one year. This would be a way to encourage the rapid reestablishment and expansion of economic activities.”

“A gesture by the government to negotiate energy for a period or even a tax reduction for the time they suffered [due to the attacks],” he continued. “Of course it will not be possible to pay, because in fact they did not carry out any activity, nor were they in a place they could do so. Therefore, regarding the forthcoming period, we would like to feel this gesture of consideration on the part of the government.”

Prime Minister Adriano Maleiane said that everything was being done to directly support companies, but it was not without difficulties.

“We are aware that if there is no support, it will be very difficult to have the province’s economy growing again and present the 100% that was already presented, therefore everything is being done. However, the environment to directly support the companies, it has not been easy. But we don’t give up. We’re going to take the companies that are there, in the case of Cabo Delgado, there’s a lot of extractive industry and if we take 10% percent of the taxes they pay here and create a development fund, that can be a way out. But that is not [going to happen] today, we have to see when we start receiving [revenue] and until then we have to mobilize resources as we have been doing,” Maleiane said.

Maleiane however also advanced that a package was already being considered by the Assembly of the Republic.

“But the package is already in the assembly, and this is already a good beginning, and we must also take the opportunity to look at each company, to see where it can seek to improve its performance. This is the first reaction,” Maleiane advanced.

Source: Zumbo FM