Government forecasts around 360 billion meticais in revenue for 2023 – Carta de Moçambique

Login

Register

http://www.clubofmozambique.com/

Government forecasts around 360 billion meticais in revenue for 2023 – Carta de Moçambique

1:33 CAT | 15 Nov 2022

The government expects to collect 357 billion meticais in revenue in 2023, corresponding to 27.0% of the Gross Domestic Product (GDP), an increase of 0.9% compared to 2022.

On the other hand, the executive will spend more than it expects to produce. according to the Proposal for the Economic and Social Plan and State Budget (PESOE) for 2023, where state expenditure is estimated at 472 billion meticais, the equivalent to 35.8% of the GDP, a decrease of 4.3% compared to 2022, leaving a budget deficit of 115 billion meticais, corresponding to 8.7% of the GDP.

The 2023 PESOE details revenue collection for the state of 357 billion meticais, and will result from the contribution of Current and Capital Revenues, whose forecasts for 2023 are 344 billion meticais and 13 billion meticais respectively. The 2023 PESOE further details that, of the state revenue foreseen, 1.2 billion meticais are revenues from natural gas in Area 4 of the Rovuma Basin.

With regard to tax revenues, the amount of 286,600.4 million meticais is expected, corresponding to an increase of 1.0 pp of the GDP compared to the 2022 PESOE Law, essentially justified by the heading of Income Taxes, which should reach around 132,801.1 million meticais, equivalent to 10.1% of the GDP.

In relation to Revenue from Goods and Services item, revenue for 2023 is estimated at around 137,630.6 million meticais, corresponding to 10.4% of GDP, representing an increase of 0.8 pp compared to the 2022 PESOE Law, the same source reveals.

Regarding revenues from Goods and Services, the document highlights that these represent about half of the tax portfolio and reflect the implementation of tax reforms, with the emphasis on the reform of the Value Added Tax (VAT) and Specific Consumption Tax codes (ICE). The revision of the Customs Tariff will also have a positive impact on revenues, allowing the generation of gains of around 21.5 billion meticais, equivalent to around 16.0% of the expected collection for 2023.

For ‘Other Taxes’ a collection of 16 billion meticais in revenue is estimated, corresponding to 1.2% of GDP, 0.3% more than the target set in the 2022 PESOE.

‘Consigned Revenues’ should reach 2.2% of the GDP, which in comparison with the 2022 PESOE Law represents an increase of 0.2 pp, the document reads.

“As can be seen, Tax Revenues will continue to contribute significantly, with about 80.3% of Total Revenue in 2023, followed by Non-Tax Revenues, including Own, Payroll and Capital Revenues, with 8 .1%, 8.0% and 3.6%, respectively. Compared to the forecast for 2022, the Non-Tax Revenue items, including Own Revenue, show a decrease of 1.9 pp of Total Revenue,” the 2023 PESOE concludes.

Source: Carta de Moçambique