Only one percent of registered taxpayers pay taxes in Mozambique

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Only one percent of registered taxpayers pay taxes in Mozambique

5:55 CAT | 08 Dec 2015

Jornal Notícias

According to the Tax Authority, only 40,000, or one percent of the four million taxpayers registered in Mozambique actually pay taxes.

And President of the Tax Authority Amelia Nakhare was quoted yesterday in Notícias as saying that, among the active population, the percentage falls to 0.5 percent.

Nakhare stressed the urgency of increasing domestic revenues, warning that the Mozambican state still depends on foreign aid for about 30 percent of its budget.

The tax authority study cited in the paper says value added tax (VAT) needs 19 years to achieve stability, a period set at 13 years for the corporate income taxes and at seven years for tax on individual income.

The Mozambican economy faces several threats, including a sharp devaluation of the metical against the dollar, foreign exchange shortages and the prospect of rising inflation, and the president of the tax authority and a former deputy minister of finance reinforced the call of the government for domestic production to increase, reducing dependence on external markets.

Source: Lusa