The Ministry of Economy and Finance (MEF) and the Tax Authority (AT) will benefit from a project, including technical support, to make taxation in the country more efficient and inclusive.

Called Tax Efficiency for Inclusive Development (TEDI), the five-year project is funded by the UK and Sweden. Support for the reforms will cover the fields of politics and administration.

For now, the work in progress has focused on analyzing Value Added Tax and Corporate Income Tax (IRPC), with face-to-face support from a team of consultants and specialists in tax law and economics, according to RTP.

"Issues such as tax exemptions, the structure of VAT and IRPC, their efficiency, and contribution to state revenues were analyzed," reads a statement from the Ministry of Economy and Finance.

"The team of consultants will also listen to the opinion of the private sector, which will then draw up a final diagnosis on these two taxes, with specific recommendations," he added.

The TEDI project has a broad roadmap, which includes the entire range of tax instruments of the Mozambican state.

"The work will continue with the analysis of the other taxes in order to draw up a holistic diagnosis of the tax system with the aim of supporting the Government of Mozambique," the MEF said.

The aim is to "ensure that medium-term reforms take place in a coordinated, integrated and evidence-based manner" and with a balance in sight: "maximizing revenue, supporting the private sector and protecting the most vulnerable".