In the Council of Ministers, the Mozambican government set the minimum purchase price for seed cotton from the producer, the ginning fee and the seed cotton price subsidy, which will come into force during the 2023-2024 agricultural season.

According to the spokesperson for the 17th ordinary session of the Council of Ministers, Ludovina Bernardo, first quality seed cotton will cost 25 meticais per kilo and second quality will cost 17.50 meticais, while the ginning of seed cotton will cost seven meticais per kilo.

In addition, on the same occasion, the Executive approved a subsidy on the minimum purchase price for seed cotton. In this sense, first quality seed cotton went up by five meticais per kilo, from a minimum price of 25 meticais per kilo to 30 meticais per kilo.

Second quality seed cotton rose by 4.50 meticais per kilo, bringing the minimum price from 17.50 meticais to 22 meticais.

In the same session, the Executive approved the revision of the Value Added Tax (VAT) refund regulations.

With the amendment, according to Ludovina Bernardo, who is also deputy minister of Industry and Trade, "the government will limit the scope of the special VAT regularization regime in order to maximize control of the operations carried out by operators in the mining and oil sectors, as well as maximizing the revenue under the VAT heading arising from those operations."