Africa-Press – Mozambique. The Mozambican Government aims to boost national production of oils for pure biofuels and has decided to halve the export tax on these products.
A joint ministerial decree from the Ministries of Mineral Resources and Energy and Finance, dated 27 October, refers to the “need to boost the production of vegetable and animal oil, as well as molasses for obtaining pure biofuels,” through “the viability of the respective projects and ensuring their export in a sustainable way, including the flexibilization of the introduction of the obligation to blend imported biofuels.”
The amendments to the Biofuels Regulation foresee a reduction in the export tax on vegetable and animal oils, as well as molasses, from 8 meticais to 0.20 meticais per litre (€0.10 to €0.002), while the export tax on pure biofuels is halved from the current 0.20 meticais per litre.
The joint decree also requires that any company producing vegetable or animal oil, as well as molasses intended for the production of pure biofuels, must now “allocate part of the said production to the domestic market,” specifically: 1% of production during the first five years, 2% from the sixth year onwards, and 3% after the tenth year.
This allocation, the decree states, “must take into account the terms and conditions of sale and prices to be established in contracts with the companies purchasing” the product, “considering market commercial conditions.”
The text adds that the producing company “must report on a monthly basis” to the Ministry of Mineral Resources and Energy “the quantities allocated to the domestic market,” including the names of the companies buying the vegetable or animal oil and molasses, “for their processing with a view to obtaining pure biofuels.”
“In the absence of companies purchasing vegetable or animal oil, as well as molasses, these products must be allocated to the national fuel distribution company, by means of a contract for this purpose, considering market commercial conditions,” the joint decree of the two ministries further establishes.
Finally, the Government defines that the companies covered must hold an export licence, or a licence for the production of vegetable and animal oils, molasses, and/or pure biofuel.
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