Africa-Press – Mozambique. As part of its Economic Acceleration Program (PAE) measures, the government promised to reduce the VAT rate from 17% to 16%. The announcement was welcomed by the private sector.
A few weeks later, the government has just published a matrix with the proposed Amendment to Law 13/2016 (Value Added Tax Code). The government now intends to withdraw VAT exemptions from private health and private education services, with the introduction of VAT at the rate of 16%.
VAT will also cover rent for commercial and industrial purposes in rural areas, and will be applied to financial, banking and insurance operations that are not subject to stamp duty.
The government proposal also contemplates the application of VAT to bicycles, with the exception of simple bicycles with up to four gears. Garbage removal services will only be exempt from VAT when performed by public entities and contracted by them. Private entities so engaged will be liable.
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