Mozambique: Banks' mandatory reserves fell 28% in the first three months of 2025
Mozambican business leaders urge fiscal and monetary policy reforms
7:00 CAT | 09 Sep 2025
Photo: Notícias
The Confederation of Economic Associations of Mozambique (CTA) on Thursday called for monetary and fiscal policy reforms to improve the competitiveness of the business sector across the continent.
“We currently have few companies paying high taxes. If we can reform this fiscal framework, we can broaden the state’s tax base, and therefore, the government can collect more taxes, with more companies producing more and paying more,” said Onório Manuel, vice-president of the CTA on the sidelines of a meeting with the President of the Assembly of the Republic, Margarida Talapa, in Maputo.
He emphasized the need for the government to “look at the major obstacles” in the country’s fiscal policy and resolve them.
“We want to base this reform on Mozambique’s economic situation, but with specific applicability to the actual status of what we call taxes and small taxes,” he explained.
According to Onório Manuel, the average rates for Value Added Tax (VAT) and Corporate Income Tax (IRPC) are high in Mozambique compared to other countries in the region, with VAT at around 16%, compared to 14% in the region, and IRPC at 32%, compared to 28%.
“When we have investors looking to invest in Mozambique, they stop and conduct studies comparing the tax burden in Mozambique with that of other countries. Those countries with a higher rate than others become less competitive, and we want to be a competitive country,” he concluded.
Source: Lusa
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