Mozambique: Essential goods are still exempt from VAT

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Mozambique: Essential goods are still exempt from VAT

8:31 CAT | 23 Apr 2024

File photo: Noticias

Products such as rice, maize, corn flour, horse mackerel, iodized salt, potatoes, onions, bread, milk, bicycles, and others considered essential remain exempt from Value Added Tax (VAT), as clarified by the Minister of Industry and Commerce, Silvino Moreno.

Earlier this year, it will be recalled, the Government removed the exemption that had been in place for the marketing of cooking oil, sugar, and soaps. Speaking in the Assembly of the Republic, Moreno explained that the reintroduction of VAT only targeted processed industrial products because it was noted that the sector was not fulfilling the purposes for which they benefited from the measure.

The exemption from VAT on sugar, oil, soaps, and raw materials, parts, and equipment was approved in 2007 with the aim of protecting the domestic industry, stimulating competitiveness, and reducing the impact on the final consumer price. However, according to the minister, during the implementation of the measure, there was an increase in the cost of the covered products in the market, above 10 percent, at a time when, simultaneously, the average annual inflation was around 7.6 percent.

Source: Noticias