Mozambique’s tax body pardons defaulting companies

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Mozambique’s tax body pardons defaulting companies

12:08 CAT | 04 Jan 2019

Amélia Nakhare - President of the Mozambican Tax Authority

The Mozambican Tax Authority has pardoned a total of nine billion meticais (around 128 million euros) in fines, interest and tax foreclosures of companies.

“We are going to decree the forgiveness of fines, interest and taxes on tax foreclosures,” said the authority’s Amelia Nakhare in an interview with the Mozambican public television channel.

The pardon will not be extended to the net debt of companies which, if not paid, will give rise to tax enforcement, he added.

“We will execute companies that do not pay the net debt,” Nakhare said.
The measure aims to enable debtor entities to alleviate their tax burdens and widen the Tax Authority’s revenue collection margin.

Among the debtors are five large public companies such as Televisão de Moçambique (TVM), Petróleos de Moçambique (Petromoc), Eletrcidade de Moçambique (EDM) and Moçambique Celular.
Petromoc and Mcel are worth four billion meticais (57 million euros).

Nakhare did not specify the amount of debt forgiveness, but only said the Tax Authority has accumulated credits of around nine billion meticais.

Source: Lusa