- Measure benefits industrial operations in sugar, oil and soap production
By MOZTIMES
Maputo (MOZTIMES)—Mozambique’s Parliament approved on Wednesday the extension of the Value Added Tax (VAT) exemption for the sugar, edible oils, and soap industries until December 2025. The measure is expected to cost the State around 2.2 billion meticais in lost tax revenue.
Through this initiative, the Government aims to support national industry, boost production, attract investment, and make these essential goods more affordable for the population.
According to the Minister of Economy and Finance, Carla Loveira, the temporary extension of the exemption will allow the Government to assess the measure’s impact and adjust fiscal policy based on concrete data, while safeguarding the sustainability of public finances.
“This is a fiscal policy instrument intended to ensure that the tax burden does not fall disproportionately on the most vulnerable, and that the tax system serves as a true catalyst for development,” said the Minister.
The Government expects that the estimated revenue loss of 2,270.79 million meticais will be offset by increased domestic production and consumption and the collection of other taxes, such as the Corporate Income Tax and the Specific Consumption Tax.
The VAT exemption for sugar, oil, and soap industries had been in place for several years but ended in December 2024 after authorities concluded it had failed to deliver tangible benefits to end consumers. (MT)
