Mozambique: State revenue increases by 2% in H1 to almost €2.3B

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Mozambique: State revenue increases by 2% in H1 to almost €2.3B

12:04 CAT | 19 Aug 2025

File photo: Lusa

The Mozambican state had revenues of 171.801 billion meticais (€2.295 billion) in the first half of the year, an increase of almost 2% compared to the same period in 2024, influenced by the payment of civil service salaries.

Despite the year-on-year growth, this is still a 44.5% achievement of the forecast for the year, according to budget execution data from January to June, accessed by Lusa today,

This increase is explained, according to the document, by the 10.3% nominal growth in the IRPS [the income tax paid by workers], taking into account the payment, already made in February of this year, of “the 13th salary and overtime to teachers and healthcare workers”.

It also highlights the nominal growth in IRPC (corporate income tax) collections, reflecting the final assessment of this tax, resulting from some corporate profitability in the 2024 fiscal year, despite “adverse factors”, alluding to the post-election unrest in Mozambique.

The document also mentions a “significant growth in non-tax revenues”, particularly from the exploitation of public domain assets, property, the sale of goods and services, and capital revenues in the same period.

“Although revenue registered slight growth, some factors contributed negatively to the failure to meet the target for the period,” the report notes, citing as an example the “impact of VAT regularization notes issued by mining companies on the collection of this tax”.

The “prevailing negative impact of post-election protests that resulted in a drop in imports in the first half of 2025, coupled with the problem of foreign currency shortages in the national financial system” is another recognized reason, as is the “reduction in payments of Excise Tax on domestic production due to the economic situation and tax benefits” in this sector, “combined with the reduction in domestic tobacco production with the departure of the company BAT to South Africa”.

Source: Lusa