The Center for Democracy and Development (CDD) suggests that the Tax Authority (AT) focus its tax collection actions on the growing class of Mozambican millionaires. The government is recommended to create a millionaires' inspection unit to broaden the national tax base.

Recently, Mozambique was listed as the 16th African country with the most millionaires in Africa, with 1,100 Mozambican individuals with more than one million dollars in assets. Citing a 2016 World Bank report, the CDD states that the country has two multi-millionaires. It therefore recommends that the AT identify all these individuals and make them comply with their tax obligations.

"Ignoring these issues, in a context of the rise of millionaires in the country, implies distorting the tax system in favor of the richest, making it regressive. In other words, the tax system will continue to focus on collecting taxes from poor and 'ordinary' citizens, instead of ensuring that the richest also pay their fair share," reads a note published by the NGO earlier this month.

The CDD recalls that one of the aims of taxation in the country is precisely to distribute national income equally "in addition to meeting the state's financial needs, promoting social justice and equal opportunities".

For the organization, the AT should create a special system and specific strategy for monitoring High Net Worth Individuals (HNWIs), given the complexity of their transactions and the ease with which they can evade their tax obligations.

The NGO recommends that the government follow the case of Uganda - the 15th country with the most millionaires in Africa, with 1,500 citizens - which sensitized its HNWIs to pay taxes and succeeded in broadening its tax base.

If Mozambique were to do this, "Mozambicans in the low-income bracket would benefit the most," says the NGO.