Africa-Press – Mozambique. Companies in Mozambique were not pre-warned before the approval, last Thursday, of the revision of the Professional Education Law, which obliges them to deduct one percent of their payroll and pay it over for technical-professional education. The Confederation of Economic Associations of Mozambique (CTA) says the decision will hurt companies.
“This information took us by surprise because we [the private sector] were not consulted, and the burden of the measure falls on us,” the CTA said, describing the way it heard about the approval.
“This is an unpleasant surprise, because we were not expecting it, especially at a time when we have been holding meetings with the government with the aim of minimising the tax burden on companies. Here, we want to express our dissatisfaction with this measure,” Edgar Chuze, vice-president of the Tax Policy Division of the Confederation of Economic Associations of Mozambique, said.
According to Chuze, the measure will negatively affect companies and cause more difficulties.
“As is well known, incorporated companies already pay 32% of their profits to the public purse per financial year. Contributions are also paid by individual companies. We understand that this gives the state sufficient resources to fulfil its social obligations towards the Mozambican people. Furthermore, not all of the product that comes out of vocational education and higher education is absorbed by the private sector. In fact, the state absorbs most of it. The question we ask is: what will be the contribution of the state under this law?” Chuze asked.
The CTA says that it will hold a meeting to discuss ways to contest the measure, with the approval of parliament.
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