The labor movement submitted a position to the government demanding the reduction of the Value Added Tax (VAT) on basic necessities, as a way to reduce the impact of the cost of living, considered unsustainable in the country.

Currently the VAT rate is 17%.

In a communiqué containing several points that summarize the main concerns and the impact of the cost of living, the representatives of the working class consider that the executive has been doing little to help the situation, not necessarily for lack of maneuvers to act.

"That the government reduce VAT on basic necessities, fuel and basic services," reads the statement quoted by VOA.

In support of the note, the secretary-general of the Central Trade Union of Workers Organization of Mozambique (OTM-CS), Alexandre Munguambe, demands that the Maputo executive move from what he called empty promises, to concrete actions to solve the problem that suffocates Mozambican families.

"The government should bring concrete actions and not empty promises of money distribution that are just measures to distract people" he said.

Dark Signs

The recent rise in the cost of fuel was the last straw for the situation described as unsustainable in the cost of living in the country.

The price of food has been pushed up by fuel and is already causing unions to consider large-scale demonstrations.

"The trade union movement reserves the right to call a national demonstration or strike as a way to show its disgust against the high cost of living" they threaten in a statement.

The Bank of Mozambique says it maintains its target of controlled single-digit inflation (less than 10%), however, it recognizes that in the short and medium term, forecasts are not very good.

"We are aware that in the short and medium term there will be a lot of pressure on inflation, which will result in an increase in administered prices," said Emílio Rungo, one of the Central Bank's administrators.