Business conditions weaken again in January - Standard Bank Mozambique PMI
Mozambique: Government reinstates VAT exemption on sugar, cooking oil and soap to curb prices
3:51 CAT | 13 May 2020
Deputy Minister of Trade and Industry Ludovina Bernardo announced the measures at the end of the Cabinet meeting on Tuesday. [Photo: Miramar]
The government has finally renewed the exemption from value added tax (VAT) for domestically produced sugar, cooking oil and soap until December 31 of this year, in a bid to keep the price of these essentials down during the Covid-19 pandemic, A Verdade reports.
“The law specifically alters number 13 of article 9 of the VAT Code, with the objective of exempting transactions of sugar, edible oil and soap products, which are considered essential,” Deputy Minister of Industry and Commerce Ludovina Bernardo announced.
The legal provision, which still needs to be approved by the Assembly of the Republic, also renews until the end of the year the VAT exemption on raw materials, intermediate products, parts, equipment and components used in the manufacture of these products.
The price of brown sugar especially has skyrocketed recently, soaring from 60 meticais per kilo to more than 100 meticais in the few commercial establishments where it is still possible to find it. Shopping malls in the country’s capital have even imposed limits on how many kilograms customers can purchase.
Source: A Verdade
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