Mozambique debt restructuring to continue as scandal grows
The Mozambican government has approved a bill for the forgiveness of fines and interest on Treasury debtors who regularised their situation between 2012 and December 2018.
“The bill aims to streamline the process of collecting tax debts and encourage taxpayers to normalise their tax situation, including the forgiveness of fines, interest, costs of executive process and other legal increases,” Council of Ministers spokesperson Ana Comoana told reporters.
The proposal for the Exceptional Regime for Tax Debts Regularisation also provides for a partial forgiveness or pardon of the fines related to non-fulfilment of accessory to payment obligations.
The pardon does not cover the net debt, but only that part of the fines, interest and other additions, Comoana explained.
Authorities maintain that the present draft law will reduce the number of cases accumulated in tax executions courts and maximise the collection of revenues.
The draft law so far lacks the approval of the Assembly of the Republic.
Earlier this year, the Mozambican Tax Authority announced that it would forgive fines, interest and tax foreclosures of companies, which in total amounted to some nine billion meticais (EUR 128 million).
Among the debtors are five large public companies, including Mozambique Television (TVM), Petróleos de Moçambique (Petromoc), Eletricidade de Moçambique (EDM) and Moçambique Celular (Mcel).
Petromoc and Mcel together owe the State four billion meticais (EUR 57 million).Source: Lusa
Challenges before Mozambican gas flows to Asia