Mozambique: Tax authorities speed up collection of tax debts and made almost 250 seizures in 2024

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Mozambique: Tax authorities speed up collection of tax debts and made almost 250 seizures in 2024

10:44 CAT | 17 Mar 2025

FILE - For illustration purposes only. [File photo: De Marck Advogados]

Mozambican tax authorities recovered more than 110.7 million meticais (€1.6 million) in debts in 2024 and executed almost 250 seizures, according to government data.

According to information on budget execution from January to December, the Mozambican tax authority made progress in 2024, with an “increase in tax debt recovery rates”. The document details that “246 seizures were made in the amount of 38,377,600 meticais [€553,000]”, and also that “110,781,150 meticais were recovered, within the scope of the increase in the recovery of tax debts relating to the previous year”.

Despite the announced increase, these revenues represent a reduction in revenue collected by the Mozambican state in 2024, which remained below the target, totalling around 344,836 million meticais (€5,177 million).

Data from the 2024 budget execution indicate that the state’s revenue collection amounted to 89.9% of the target, while in 2023 it reached 91.8% of the targets for the year.

It was a “year characterized by countless adversities and challenges”, spokesperson for the Council of Ministers, Inocêncio Impissa, admitted in February when presenting the data on the execution of the Economic and Social Plan and State Budget (PESOE) for 2024.

Impissa however added that the state’s total expenditure in 2024 stood at just over 493,356 million meticais (€7,403 million), corresponding to 86.9% of the budget, when in the previous year it reached 100% of what was planned. Meanwhile, the Mozambican government decided to “renew” the 2024 State Budget, in twelfths, due to the holding of the general elections on October 9, foreseeing the approval of the 2025 document during the first half of the year.

“The implementation of the expenses foreseen in the PESOE [Economic and Social Plan of the State Budget] 2024 must follow the principle of using the amounts set therein in twelfths, until the approval of the PESOE 2025,” reads an explanatory document from the Ministry of Economy and Finance, previously reported by Lusa.

Since October 21 of last year, Mozambique has been experiencing violent post-election social unrest, with demonstrations and strikes degenerating into clashes with the police and causing the death of at least 357 people, almost 800 gunshot wounds, and the looting and destruction of much public and private property.

Source: Lusa