In 2024, Mozambique’s tax authorities recovered over 110.7 million meticais in tax debts, executing nearly 250 seizures. However, state revenue fell short of targets at 89.9%. Total state expenditure was 86.9% of the budget, amid social unrest following election-related tensions.
In 2024, the Mozambican tax authorities successfully recovered over 110.7 million meticais (approximately €1.6 million) in tax debts, executing nearly 250 seizures. This progress in tax debt recovery is evident in the official budget execution report detailing 246 seizures amounting to 38,377,600 meticais (around €553,000).
Nonetheless, despite these efforts, the total revenue collected by the Mozambican state in 2024 fell short of expectations, reaching about 344.836 million meticais (€5.177 million), which equates to 89.9% of the revenue target, down from 91.8% in 2023.
Inocêncio Impissa, a spokesperson for the Council of Ministers, noted in February that 2024 had been a challenging year for revenue collection. He reported total state expenditure at over 493.356 million meticais (€7.403 million), representing 86.9% of the approved budget compared to 100% in the preceding year.
Due to the upcoming general elections on October 9, the Mozambican government has opted to “renew” the State Budget for 2024 in twelfths. This will allow the expenditure plan to proceed until the 2025 budget is approved, as detailed in a Ministry of Economy and Finance document.
The nation has faced significant social unrest and violence since October 21 of the previous year, reflecting ongoing political tensions. Protests have resulted in the deaths of at least 357 individuals, injuries to nearly 800 from gunfire, and extensive damage to both public and private properties.
In summary, the Mozambican tax authorities’ efforts to recover tax debts have yielded notable results, recovering significant amounts and executing numerous seizures. However, overall revenue collection has not met targets, pointing to broader challenges faced by the economy in 2024. Amidst these fiscal issues, upcoming elections and related unrest further complicate the situation for the government.
Original Source: clubofmozambique.com
