Dribbling through the pandemic, Mozambique Tax Authority ups revenue collection in H1

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Dribbling through the pandemic, Mozambique Tax Authority ups revenue collection in H1

2:53 CAT | 10 Aug 2020

Photo: O País

Even while numerous companies benefit from a degree of fiscal forgiveness, the Mozambican tax authorities earned more money on domestic transactions between January and June of 2020. Revenues stood at around 85.5 billion meticais, 105.4 percent of the target for the first half of the year.

This increase in times of crisis was due to the collection of Personal Income Tax (IRPS) on wages, and Value Added Tax (VAT), director-general of Planning Studies and International Cooperation at the Tax Authority of Mozambique (AT), Augusto Tacarindua, explained.

“Even with the pandemic, salaries are being paid, mainly, in large companies. The creation of jobs is also noteworthy,” he said

But, with the country entering its fifth month of a State of Emergency, Tacarindua revealed that the revenue collection target for this year had been revised downwards.

The tax impact resulting from the waiver of payments on account and the postponement of the Special Payment on Account by companies affected by the Covid-19 pandemic will cost the state around 2.7 billion meticais in advances that would otherwise have been made.

By Edson Arante

Source: O País