The Mozambican government still has room to apply more Value Added Tax (VAT) exemptions without affecting the most vulnerable sections of society.

"The government has made continued progress on the structural reforms that are part of the IMF-funded program," but believes there is more "room for eliminating VAT exemptions that do not affect the most vulnerable," writes Notícias, quoting an IMF statement.

This observation follows the visit of a mission from the international organization to Mozambique between April 24 and May 5.

The international group pointed out that the national economic recovery has gained momentum after the Covid-19 pandemic, registering growth of 4.2% in 2022, with growth of around 5% expected for 2023, partly thanks to natural gas.

However, "the fiscal performance for 2022 was lower than expected, with a primary deficit (after donations) of around 0.5% of GDP [Gross Domestic Product], above the target," he said.

It should be remembered that the same mission suggested that the government reduce spending on the wage bill in order to maintain sustainable economic growth in line with the approved budget.