Deduction of up to 1% for Professional Education Fund may deter investment – MDM

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Deduction of up to 1% for Professional Education Fund may deter investment – MDM

4:32 CAT | 15 Dec 2022

Image: Domingo

Parliament this Wednesday (14-12) definitely approved the revision of the Professional Education Law, approved in general terms last week, though not unanimously.

For the Mozambican Democratic Movement (MDM), article 37 of the referred law can only slow down the economy, contrary to the spirit of the government.

Article 37 of the aforementioned law establishes that public and private companies must contribute up to 1% of their payroll to support the National Professional Education Fund, a mechanism aimed at providing funds for the professional education sector.

In the understanding of the MDM, which demanded the withdrawal of the article in question, this is yet another tax to be applied to business operators, who are already suffering from a crisis caused by the national and international economic situation.

“In addition to the costs that it represents for companies, especially small and medium-sized companies, the question arises of knowing how to monitor the use of this amount – who will be its managers, what guarantees exist for its use, what the criteria are for its allocation? Is it not clear to everyone that this is not a fund for professional education, but a slush fund with dubious destinations, like the Agrarian Development Fund and the Maritime Fund, among others,” argued MDM deputy Silvério Ronguane.

Submitted to the vote, in general, the Renamo and Frelimo benches had a different understanding of the proposal, rejecting the MDM’s request and voting in favour.

The two benches claim that companies large and small can all contribute to equipping institutions, as well as to creating decent conditions for quality education.

Regarding the management of the funds, Frelimo explains that the fund in fact already exists, and there were always internal control and auditing mechanisms to guarantee the transparency of the process, for the good of all Mozambicans.

The revision of this law, in force since 2014, aims to adapt the instrument to current challenges, mainly related to technology.

Source: O País