Mozambique H1 VAT Revenue Declines 4.1% Daily Average

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Mozambique H1 VAT Revenue Declines 4.1% Daily Average
Mozambique H1 VAT Revenue Declines 4.1% Daily Average

Africa-Press – Mozambique. VAT generated an average of 196 million meticais (€167,000) per day for the Mozambican state coffers in the first half of the year, a 4.1% decrease compared to 2024, according to data accessed by Lusa.

According to Ministry of Finance budget execution data for the first half of the year, the state collected 35.604 million meticais (€476 million) in Value Added Tax (VAT), including domestic transactions and imports, corresponding to 20.7% of all taxes collected in Mozambique during that period.

In the same period of 2024, VAT collection had generated more than 37,138 million meticais (€496 million), while for this year, over the 12 months as a whole, the government forecasted VBAT revenue of 85,562 million meticais (€1,143 million), meaning that in the first half of the year it only achieved 41.6% of the annual target.

In contrast, during the same period, 1,075 VAT refund requests were received by tax offices, totalling nearly 34.26 billion meticais (€457.6 million). Refunds issued through June reached nearly 3.992 billion meticais (€53.3 million), with 187 requests paid, representing a 7.7% decrease compared to the same period in 2024, the report also notes.

The Ministry of Finance acknowledges in the document that it has “measures underway to improve revenue collection sources”, in this case “focused on strengthening internal revenue sources through measures aimed at broadening the tax base, modernizing tax administration, and improving oversight mechanisms”.

It specifically explains that “the operationalization of tax machinery is aimed at enabling control of VAT invoicing”.

Overall, total revenue collected in the first half of the year by the Mozambican state amounted to 171,801 million meticais (€2,295 million), 44.5% of the budgeted target for the whole of 2025.

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