On Tuesday, Mozambican President Filipe Nyusi announced a package of 20 measures to stimulate the economy, including a reduction from 32% to 10% in the IRPC rate on agriculture, aquaculture and public transport.
Reacting at a press conference to the measures, the president of the ACB, Félix Macha, argued that the tax relief should have covered other areas with a direct impact on the lives of the majority of the population, such as bakery and poultry.
“Most of the ladies who do business in this country are linked to poultry farming and everyone eats bread these days, hence the ACB’s opinion that bakeries should be covered in the IRPC reduction”, stated Macha.
Assuming that the measures announced by the head of state took into account the need to avoid a larger budget deficit, the businessman considered that if the tax relief had included some areas with an impact on the cost of living, the public accounts would not suffer a significant effect.
“We are not saying that what was announced is wrong, we are asking for the extension of the IRPC, so that the worker benefits”, he declared.
He also commented on the creation of a US$250 million loan guarantee fund, with a view to reducing interest rates, and asked that the management and allocation of the amount be decentralized so that economic activities carried out in the provinces are benefited.
“We propose that each province identify areas of interest that can leverage small and medium-sized companies, because the country is large and the private sector is not only in Maputo”, he declared.
Regarding the decision to transfer 10% of revenues from the exploitation of natural resources to the provinces where they are extracted, the president of the ACB congratulated the decision, noting that it will promote development.
“The challenge lies in its implementation. Thankfully, a monitoring office was created, with the hope that the private sector will be represented”, stressed Félix Macha.
Macha called for special attention to be paid to areas affected by natural disasters and armed violence in Cabo Delgado province, in the north of the country, noting that the devastation is greatest in these areas.
“The new measures ignore the cyclones and the Cabo Delgado issue,” he lamented.
The 20 measures released this week by Filipe Nyusi are part of the PAE – Economic Acceleration Stimulus Package designed to respond to the country’s growth needs, the negative impact of the Russia-Ukraine war, armed violence in Cabo Delgado province, north of Mozambique, and natural disasters.
The measures lower the IRPC from 32% to 10%, in agriculture, aquaculture and public transport, and the VAT, from 17% to 16%, in agriculture and renewable energies.
The Mozambican head of state also pointed to the introduction of tax incentives for new investments, over the next three years, but did not mention the rates of these incentives.
In the package, the share of revenues from natural resources transferred to the provinces where they are extracted is increased from 2.5% to 10% and a loan guarantee fund worth US$250 million is created, so that banks can provide credit to the savings at more affordable interest rates.
Source: Correio da Manhã by www.cmjornal.pt.
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