Half of Planned Tax Revenue Achieved in H1
The Mozambican Tax Authority (AT) collected around 127 billion Meticais in tax revenues between January and June of the current year, 48% of the 265 billion Meticais target set by the Budget Law.
The director of AT’s Office of Planning, Studies and International Cooperation, Augusto Tacaríndua, explains that the revenue collected in the first half comes from Income Tax (IRPC and IRPS) and Value Added Tax (VAT).
“Surprisingly, large taxpayers showed the positive results behind this performance, accounting for more than 70% in the Income Tax and VAT categories,” he said.
Tacaríndua was speaking at a press conference in Maputo on Wednesday held to assess the performance of the AT in the first half of this year, during which, in regard to Individual Income Tax (IRPS), he said it was worth highlighting payments relating to workers’ pay.
“But other components are also included, such as the Property Income Tax (leasing of real estate), as well as natural persons who carry out business activities,” he said.
Regarding Value Added Tax (VAT), the AT had registered growth of around 11% in internal operations, reflecting the increase in internal consumption of goods and services transacted internally, in contrast to the tax levied on imported goods.
“We believe that the performance of VAT on imports will predominate if we take into account the prevalence of the effects of the pandemic that will result in restrictions on cross-border movements, thereby reducing the level of goods purchased abroad,” Tacaríndua observed.
Regarding the possibility of reaching the year’s 265 billion Meticais revenue target, Tacaríndua said that “our fear has always been and will continue to be the impact of the Covid-19 pandemic in the near future”.
“For example, we are now seeing a new wave of the pandemic that no one expected. However, as an institution with the obligation to collect revenue for the state, the AT will continue to make efforts, implementing all the measures already outlined to collect the 265 billion Meticais, to be used in expenses to meet the needs of the people,” he concluded. (Notícias- 23 July 2021)
