Mozambique: State revenue up 13% in 2023 as corporate tax take grows 74%

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Mozambique: State revenue up 13% in 2023 as corporate tax take grows 74%

8:54 CAT | 22 Feb 2024

File photo: Lusa

According to official figures, Mozambique’s state revenue grew by 12.7% last year, to 321.921 billion meticais (€4.675 billion), driven by an increase in the tax take, primarily of corporate income tax.

The economic and social balance of the execution of the State Budget from January to December from the Ministry of Economy and Finance, to which Lusa had access on Wednesday, notes that this is an achievement equivalent to 92.2% of the amount expected to be collected with current revenue in 2023, estimated by the government at almost 349,114 million meticais (€5,000 million) for the entire year.

Of the total revenue collected by the state last year, 90% relate to taxes, amounting to 293,589 million meticais (€4,263 million), increasing by 11.6%, but with an execution rate of only 93% of predictions.

Value Added Tax (VAT) in 2023 yielded the state almost 63,455 million meticais (€921.5 million), a fall of 45.9%, thus guaranteeing only 69% of the budget for the entire year.

The report reveals that the gross amount of VAT charged in 2023 stood at 75,994 million meticais (€1,103 million), with 12,539 million meticais (€221.3 million) deducted in refunds of that tax.

Corporate Income Tax, paid by companies, grew the most, by 74%, to 90,117 million meticais (€1,308 million), with an execution rate of 115% of that expected by the government.

Mozambique’s Gross Domestic Product (GDP) grew 5.01% in 2023, against 4.16% in 2022, and average annual inflation was 7.13%, in this case a deceleration of 3.17 percentage points compared to the same period of the previous year, the document reveals.

Source: Lusa