Mozambique's Tax Authority (AT) will soon launch the cooperative model of economic organization, aimed at transforming the informal sector and formalizing productive associations and stimulating better organization and reducing the levels of proliferation of illegal markets.

The proliferation of these types of activities has resulted in revenue losses averaging about 30% of gross domestic product (GDP) annually.

The information was advanced, recently, in Maputo, by the president of the AT, Amélia Muendane, in the launching ceremony of a Portal, with the intention of guaranteeing greater convenience to taxpayers in the fulfillment of their fiscal obligations, dispensing with the need to go to the collection units.

The platform also allows the electronic submission of tax returns, in addition to offering a range of advantages through features such as requesting a discharge certificate, simulating tax calculations, and consulting the tax situation, among other information of general interest.

According to Muendane, the proliferation of the informal economy has substantially affected the quality of food products, some of which are sold after expiration dates, illegally imported alcoholic beverages, and smuggled and adulterated fuel.

In 2021, revenue losses with registration due to illegalities in the informal sector were around 11.6 million meticais and this year the country has already lost, in two months, 9.7 million meticais, with informal trade.

"As we mentioned, tax evasion is one of the elements that weaken the Government's policies, aiming at macroeconomic instability and unsustainability of public and private investment," he stressed.

Therefore, according to Muendane's appeal, there is an urgent need to reverse this scenario and emerge into a new era in which the taxpayer and the state are true partners in promoting integrated development.

According to the source, one of the measures will be to expand the tax base through the implementation of the "Taxation & Citizenship program," which aims to raise social awareness of the relationship between the state and society, enlightening the public to issues related to taxation, tax payment mechanism, taxation method, and public finances.

It also intends to carry out the "Tax Engagement Program", which aims to maximize tax collection through the exchange of information between the tax authorities and taxpayers, and thus change the image of taxpayers regarding the payment of taxes, among others.