In 2024, Mozambique’s tax authorities recovered over 110 million meticais in tax debts and executed nearly 250 seizures, despite overall state revenue falling short of targets at 89.9%. The year was marked by various challenges, leading to the government renewing the budget in preparation for upcoming elections and ongoing social unrest that has occurred since late 2023.
In 2024, Mozambican tax authorities successfully recovered over 110.7 million meticais (approximately €1.6 million) in tax debts and executed nearly 250 seizures. This advancement reflects improved tax debt recovery rates compared to previous years. Specifically, 246 seizures amounted to 38,377,600 meticais (€553,000), highlighting the government’s commitment to addressing tax collection issues.
Despite these efforts, the overall revenue collected by the state in 2024 fell short of targets, totaling around 344.836 million meticais (€5.177 million), which corresponds to 89.9% of the goals set, a decline from the 91.8% achieved in 2023. This performance underscores ongoing challenges faced by the tax authorities in revenue collection.
Inocêncio Impissa, spokesperson for the Council of Ministers, described 2024 as a “year characterized by countless adversities and challenges” when presenting the Economic and Social Plan and State Budget (PESOE) execution data. He noted that the total state expenditure reached just over 493.356 million meticais (€7.403 million), which was only 86.9% of the implemented budget compared to a full 100% expenditure in the previous year.
Due to the upcoming general elections on October 9, the Mozambican government has opted to “renew” the 2024 State Budget in twelfths, postponing the approval of the 2025 document until the first half of the following year. This decision is elaborated in an explanatory document from the Ministry of Economy and Finance that emphasizes adherence to a structured budget implementation process.
Additionally, since October 21 of the previous year, Mozambique has faced serious social unrest post-elections, leading to protests and clashes with law enforcement. This unrest has tragically resulted in the deaths of at least 357 individuals and inflicted nearly 800 injuries, along with significant damage to public and private properties.
In summary, the fiscal year of 2024 projected a significant endeavor by Mozambican tax authorities to enhance tax debt recovery, achieving over 110 million meticais collected. However, the failure to meet revenue targets highlights the persistent challenges in efficient tax collection. The government’s proactive measures, including a renewed budget cycle, reflect an adaptive approach amidst ongoing social turmoil and economic pressures, aiming for a structured financial year ahead.
Original Source: clubofmozambique.com
