Government creates regulation for public debt – Mozambique

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Government creates regulation for public debt – Mozambique

12:50 CAT | 06 Dec 2017

Notícias

The Mozambican government has approved a regulation covering the negotiation, contracting and issuance of public debt, as well as guarantees, in observance of the current legislation.

According to the Minister of Economy and Finance, Adriano Maleiane, approval of the document should contribute to a better perception of Mozambicans about the issuance of guarantees.

Speaking to the press on Tuesday at the end of the 43rd ordinary session of the Council of Ministers, Maleiane said that the instrument should also contribute to greater transparency.

“It lays out what is necessary for the government to contract a debt. What is necessary for the government to issue a guarantee, the documents, the procedures, what we send to the Assembly (of the Republic), what we send to the Council of Ministers and what we send to the Attorney General,” Maleiane said.

He emphasised that the regulation was of significant importance, since it would permit state organs to know when to issue guarantees to companies.

“We have been debating the issue of guarantees, because you, too, have to know when the state issue guarantees and why” he said, adding that the legal provision would bolster the management of public debt.

VAT refund

The minister also announced the amendment of regulations covering the refund of Value Added Tax (VAT), citing entrepreneurs as the main beneficiary.

“What happens is that net VAT (introduced in 2015) allowed VAT return in the same year. As this was regulated, others who had not claimed until 2015 then claimed, creating a problem that should not have existed,” he said.

The amendment establishes the repayment period, he stressed, and sought to incorporate in a single legal instrument all matters relating to the refund of VAT, taking account of the changes which have been made to the VAT Code and its regulation over time.

Source: AIM Moçambique