22 February 2013

Mozambique: Businesses Welcome E-Taxation Reform

Maputo — Mozambican businessmen have declared their dissatisfaction at the time consuming procedures involved in paying and declaring their taxes, which lead to high costs for their companies.

According to Agostinho Vuma, deputy chairperson of the Confederation of Mozambican Business Associations these costs include visits to various public institutions and lengthy waiting times at the tax offices, where declaration are deposited and taxes paid.

Speaking at a seminar in Maputo on the plans of the Mozambican Tax Authority (AT) to allow taxes to be paid online, Vuma said “the private sector in Mozambique always made clear its displeasure at the operational costs and opportunity costs involved in complying with fiscal obligations”.

Vuma welcomed the AT’s “e-taxation” project, which he believed would encourage more businesses in the formal sector to pay their taxes.

“We believe that the introduction of e-taxation will help modernise our tax system.

We suppose that, with the simplification of the procedures for declaring income and paying taxes, the costs will fall considerably, and as a result the tone of our protests will soften”.

Vuma said the CTA was well aware that the government has been working on reforms to improve the business environment in Mozambique. “The tax sector has been in the vanguard”, he added, “and examples of this are the introduction in 2011 of the single electronic window (for taxes on foreign trade), and now the introduction of e-taxation”.

E-taxation is being introduced gradually, in the form of modules, leading to the full computerisation of the systems for declaring income and paying taxes. The AT hopes that as from next year taxpayers can submit their declarations through the Internet, rather than visiting tax offices in person.

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