Mozambique tightens noose on tax evasion, introduces electronic cargo tracking system – Watch

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Mozambique tightens noose on tax evasion, introduces electronic cargo tracking system – Watch

2:53 CAT | 06 Jun 2019

Photo: Miramar

The Tax Authority of Mozambique is about to introduce an electronic system of sealing and controlling goods in transit in Mozambique, as a response to losses in taxes estimated at about 50 billion meticais through false claims that goods are in transit as a way of evading duties.

Mozambique’s geographic location puts it at relative advantage in the SADC region but, meanwhile, the country continues to record heavy tax losses related to imported goods.

The Tax Authority will start sealing and controlling the traffic of all goods in transit at ports, airports and national borders.

On Wednesday, the Tax Authority and the MECTS Mozambique Electronic Cargo Tracking Service SA consortium signed a concession agreement for the installation and operation of the electronic sealing and cargo tracking system in Mozambique. The system has already been tried successfully in Rwanda and Kenya.

The head of the MECTS consortium says that he expects to reduce tax losses resulting from tax evasion and falsely claiming in-transit status by Mozambican importers by more than 50%.

Regarding products whose sealing has already been implemented, Tax Authority director Amelia Nakhare says the results are positive, although the illegal importing of beverages and cigarettes, and the smuggling of tax stamps, is still ongoing.