Maputo, 6 Jul (AIM) – Mozambique’s Confederation of Business Associations (CTA) accuses the State of lacking centralized coordination mechanisms, resulting in the levying of fees by various state entities.
According to CTA chairperson, Álvaro Massingue – who was speaking in Maputo during an audience granted to CTA delegation by the Mozambican Minister of Finance, Carla Louveira – the lack of centralized coordination mechanisms undermines the country’s companies.
“There is a proliferation of fees and charges levied by different state entities, because the State lacks a centralized coordination mechanism or an aggregate cap. This fragmentation breeds inefficiency, drives up operating costs, and undermines the competitiveness of our companies”, he said.
According to Massingue, the country’s Tax Authority must introduce reforms aimed at simplifying procedures, reducing bureaucracy through the digitalization of processes, and preventing the multiplication of interpretations that result in preventable penalties for companies.
“We wish to highlight the need to review cases where fines and penalties arise from the reversal of previously granted tax incentives, even in instances where economic operators have fully met their investment commitments”, he said.
“Clear legal foundations for mechanisms to offset tax credits and debts are needed. Such mechanisms would bolster corporate liquidity and enhance the predictability of public financial management”, Massingue added.
The meeting with the Ministry of Finance is part of the preparations for the 21st Annual Private Sector Conference (CASP), which will take place on July 14 and 15. CASP is is expected to discuss investment opportunities valued at about 1.2 billion US dollars.
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