Agencia de Informacao de Mocambique (Maputo)

Mozambique: Minibus Owners Don't Pay Taxes

27 March 2008


Maputo — The vast majority of minibuses that provide passenger transport in Maputo and the neighbouring city of Matola, are either unlicensed or do not pay taxes.

This assertion can be made without fear of contradiction because to date less than 10 per cent of the minibus owners have applied for the fuel subsidy promised by the government.

When the price of diesel rose to 35.35 meticais (about 1.46 US dollars) a litre, on 23 January, the government agreed to an increase of up to 50 per cent in the fares charged by the minibuses (known colloquially as "chapas"). But when the fare rise took effect, on 5 February, it provoked riots across the two cities.

The government hastily renegotiated the fares with the Federation of Road Transport Associations (FEMATRO). The fare rise was withdrawn on the understanding that the minibus owners would be compensated through a fuel subsidy, which reduced the price of diesel to 31 meticais a litre - the price in force before 23 January.

But to apply for the subsidy, the transporters had to be licensed, and had to show that they had paid their taxes in 2007. The subsidy for February was paid as from 3 March - but, according to a report in Thursday's issue of the Maputo daily "Noticias", so far only 310 of the minibus owners have applied. Since the latest figure for the number of chapas operating in Maputo and Matola is 3,410, this means that only 9.1 per cent have applied for the subsidy.

According to FEMATRO chairperson Rogerio Manuel, so far 290 of these transporters have received the money, and the paperwork for the other 20 is being processed.

Manuel admitted that the only reasons that could prevent transporters applying for the money are "because they are not licensed, or because they don't pay tax". He thought tax avoidance might be because there had been "many" fuel price hikes since 2005, without any corresponding fare increases.

He noted that the price of licences had risen by 100 per cent and thought this may have led some minibus owners to neglect their tax obligations.

FEMATRO says it is urging transport operators to comply with fiscal norms, and to work in a professional manner.

Pf/ (380)

Be the first to Write a Comment!

More News on allAfrica.com

Copyright © 2008 Agencia de Informacao de Mocambique. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

AllAfrica - All the Time

SELECT
SELECT

Most Active Stories: Mozambique

Topics