Tighter controls in Mozambique promise greater fairness in export revenues

In a significant move to strengthen the economy, Mozambique has introduced an innovative fiscal measure. The decision aims to improve the monitoring of its abundant natural resources and is part of the Economic Acceleration Package (PAE) proposed by Filipe Nyusi.

The main aim of introducing measure 6 of the PAE is to step up control over natural resource export activities. Its implementation ensures greater efficiency in taxing exports through stricter control. This action will focus on the issue of export under-invoicing, combating smuggling and minimising fiscal risks by introducing independent oversight into the export process. The decision promises to safeguard valuable resources, contributing to the country's economic expansion.

Export under-invoicing, a method by which the real value of exported goods is deliberately understated in order to reduce tax liabilities, has been a common scourge in most resource-rich African economies.

This measure is a determined response to the problem, strengthening regulations and closing loopholes in export operations. By ensuring greater control over the quantities, specifications and values involved, the government aims to put an end to under-invoicing and secure the country's fair share of revenue from natural resource exports.

A joint ministerial decree was published by the Minister of Economy and Finance and the Minister of Mineral Resources and Energy with the aim of mitigating and combating export under-invoicing. This practice consists of deliberately undervaluing the real value of exported goods in order to reduce tax obligations.

The measure is also an integral part of the latest fiscal consolidation actions being implemented by the Government.

As part of this measure, an international tender has been launched to select an independent entity that will oversee the quantities and specifications of goods exported by mining companies. This procedure aims to minimise the risk of manipulation intended to fraudulently reduce tax obligations.

Finally, it is worth mentioning that the tender is already in its final evaluation phase. The selected entity will be announced in the coming days, thus culminating the implementation of a set of strict measures aimed at a more vigorous and effective approach to reducing fiscal risks and combating tax evasion in the export of national resources.

By ensuring better control of the quantities, specifications and prices involved, the Mozambican government intends to put an end to tax evasion and secure a fair share of revenue from natural resource exports.