The Confederation of Economic Associations of Mozambique (CTA), the country's largest employers' organization, suggested on Wednesday (13) that the debt owed by the state to suppliers should be offset against tax obligations.

The position was defended during a meeting between the Ministry of Economy and Finance (MEF) and the CTA's Tax Policy, Customs and International Trade department to analyze and coordinate the actions of the XVIII CASP follow-up matrix.

"In the context of the recommendation on the late payment of invoices to suppliers of goods and services to the state, the department presented the following proposal: MEF to offset the debt that the state has with companies through the tax obligations that companies have with the state, in order to mitigate the pressure on the state treasury," reads the document released at the end of the meeting.

According to the CTA, the proposal was also extended to include a recommendation on improving VAT refund procedures.

On the occasion, the government, through the MEF, promised to analyze the mechanism for extending the compensation of the various tax obligations, stressing that, "with regard to the high tax burden, the Executive is carrying out a survey of taxes and fees at national, district and municipal level, in order to then produce a proposal for tax reform".