Government plans to cut VAT on the basic food basket and fuel taxes

Governo pretende cortar IVA da cesta básica e taxas de combustíveis

The President of the Republic, Daniel Chapo, said yesterday that his government could, in the next few days, announce measures to reduce the cost of living for Mozambicans.

Among the reforms, the Executive could eliminate Value Added Tax (VAT) on basic necessities, "without which people can't go a day without eating".

"We are working to find various solutions. One of them is to take the products in the Mozambican people's basic food basket and remove VAT, which makes the main products such as rice, sugar, oil, beans... more expensive... those that Mozambicans can't go a day without eating," he said.

Chapo was speaking in Addis Ababa, Ethiopia, after attending the 38th Summit of Heads of State and Government of the African Union.

Another measure that the government is evaluating is the reduction of fuel import taxes that make it more expensive for consumers.

"There may be fuel-related issues that lead to the current prices. When fuel is expensive, it's the last consumer who pays for it, so it makes basic necessities and the whole economic chain more expensive," he said.

The President of the Republic noted that the fact that the country is not a producer is not an obstacle to revising the fuel tax chain.

"It's true that the country doesn't produce fuel, and prices don't depend on the country alone, but in the component related to the aspects that lead to the price being set, you can do the exercise of cutting the spectra that can relieve prices, consequently the whole chain of the economy down to the last consumer," he said.

Share this article

Leave a Reply

Your email address will not be published.