Maputo, 6 Jul (AIM) – Mozambican Minister of Finance, Carla Louveira, has reaffirmed the government’s commitment in consolidating public accounts and reducing the fiscal deficit, which is crucial for public debt sustainability and the fulfillment of the State’s financial obligations, both domestically and internationally.
According to the minister, speaking at the dialogue meeting with the country’s Confederation of Business Associations (CTA), ongoing reforms seek to address challenges arising from internal and external factors that have impacted the economy’s performance.
Louveira explained that the government’s strategy is based on modernizing public administration and state finances, keeping pace with digital transformation and enhancing financial management efficiency.
“Our focus is not on charging more from those who already pay taxes. We intend to broaden the tax base so that everyone contributes fairly, allowing for a gradual reduction in the tax burden on the formal sector. The goal is not to increase the tax burden on current taxpayers, but rather to integrate new economic sectors into the tax system”, she said.
The government, she explained, is investing in technological modernization and expanding the tax base, with a particular focus on the digital and informal economies to strengthen tax equity, increase transparency, and improve revenue collection.
“This is the only sustainable solution to reduce, in the medium and long term, the tax burden currently borne by formalized companies. The government is also implementing measures to simplify administrative procedures and reduce bureaucracy in public services, replacing paper processes and documents with digital solutions”, the minister.
The minister also revealed that the Ministry of Finance is currently leading several tax reforms, including the revision of the VAT Code regulations, the Simplified Tax for Small Taxpayers (ISPC), and the Corporate Income Tax (IRPC).
These measures are part of the strategy to modernize the tax system and are being developed in coordination with the CTA.
Regarding the State’s debt to suppliers of goods and services, Louveira acknowledged that payment delays affect companies’ cash flow and reduce their investment capacity.
“Government is preparing a strategy to gradually regularize overdue payments and fulfill its commitments. We also intend to revise the Tax Benefits Code, currently under preparation. The intention is to ensure that tax incentives contribute effectively”, the minister said.
SN/Am/
