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TVM (File photo) / Amélia Nakhara
The Tax Authority of Mozambique (AT) collected gross revenue of more than 202 billion meticais last year [more than US$3.4 billion at current exchange rates], 108.54 percent of its pre-defined target. The amount collected exceeds the 2017 target set by the state budget law by around 16 billion meticais [ around US$305.5 million at current exchange rates].
The 202,253,330.48 thousand meticais revenue does not include capital gains tax of US$352.7 million resulting from the sale of shares of the Italian multinational ENI in Area 4 of the Rovuma Basin in Cabo Delgado to the North American oil and gas company Exxon Mobil.
In a press release, the AT justifies the positive performance with the political stability that the country is experiencing, saying it had allowed the resumption of economic activities and the normalisation of the business environment for the private sector.
Another contributing factor was the increase in the price of raw materials in the international market, which stimulated the recovery and increased production in the extractive industry.
Good performance in sectors making significant contributions to the national economy and fiscus, such as agriculture and forestry, transport, information and communications, trade and repair services and fisheries, was also decisive for the increase in state revenue.
Measures adopted by the Tax Authority “in relation to the analysis of the companies’ accounts procedures relating to previous periods, raising awareness of taxpayers in order to comply with their tax obligations and carrying out auditing and supervision campaigns,” had also contributed, the statement said.
Better supervision of the marketing of products covered by the sealing process was another factor in achieving the goals, the AT maintains, explaining that measures improved revenue from excise duty.
“There was also an improvement in tax collection efficiency, coupled with the modernisation of collection processes and the updating of the Single Electronic Window, and introduction of e-Taxation for Large Taxpayer Units,” the Tax Authority statement concludes.