Mozambican corridors see number of trucks fall
Mozambique: Businesses sound the alarm on tax burden
8:57 CAT | 26 Mar 2025
Photo: Autoridade Tributária de Moçambique - AT
The Confederation of Business Associations of Mozambique (CTA), which represents the private business sector in Mozambique, warned yesterday of the “zero profitability” of companies in the face of the “above-average” tax burden, asking the government to “exercise restraint” in the introduction of new taxes.
“With regard to the competitiveness of the private sector, studies by the CTA indicate that the current tax burden stands at 36.1%, a value above the average for developing countries and very close to the maximum point of the Laffer curve (36.67%),” said CTA president Agostinho Vuma in Maputo during a ‘Taxpayer’s Day’ event.
“Exceeding this limit could result in zero profitability for private sector activity, with negative impacts on investment and economic growth,” he added.
The private sector also called for a review of the procedures and time required to comply with tax obligations, indicating that the current procedures contribute to a “high tax burden”, which makes “practices such as smuggling and tax evasion more attractive, especially among small producers”.
Mozambican businesspeople asked the government to “improve” the systems for analysing the introduction of new tax rates and charges on companies, as well as “restraint in the introduction of new rates and other tax charges” for companies, so as to “to prevent prudential limits from being exceeded”.
The CTA also suggested the integration and centralization of tax policy in the Ministry of Finance, with the aim of ensuring greater control of tax policy and analysis of its effects on the performance of the economy, and called for the fight against corruption to prevent the diversion of resources collected.
Source: Lusa
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