Tax revenues collected are below half

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Tax revenues collected are below half

1:08 CAT | 15 Aug 2018

File photo: Folha de Maputo

The Mozambican Tax Authority (TA) has so far raised just over 105.2 billion meticais in revenue this year, a figure that represents about 47.5 percent of its the annual target of 222.8 billion meticais.

The amount already collected however represents 100.74 percent what the TA had forecast for the first half, and corresponds to a fiscal ratio (the ratio between tax revenue and gross domestic product) of around 10.62 percent.

Tax collection, rose nominally by 18.16 percent compared to 2017, with a fiscal ratio of 10.11 percent of GDP (about 991.6 billion meticais) at current prices.

This performance the extraordinary revenues from capital gains in December 2017 and revenues in January 2018, amounting to approximately 21 billion meticais.

The figures were revealed on Tuesday by Tax Authority spokesman Fernando Tinga at a press conference in Maputo called to take stock of the institution’s performance in the first half of this year.

Tinga explained that the 47.5 percent collected so far is usual for a first half, when collections are usually lower than the second half, but said that there were “very clear” in July and August that the goal was well within reach.

“Normally, the best performances are in the second half of the year. This figure gives us hope that we will achieve the yearly goal. We have had worse situations, when we were well below these numbers. But these figures, given the record of the performance of the national economy in the first half, give us hope that we are on the right track,” he said, quoted by AIM .

The Tax Authority indicated that it intends to continue to promote efficiency and fairness in collecting revenues in order to collect 222.8 billion meticais by the end of the year.

Source: Folha de Maputo