The President of the Republic, Daniel Chapo, has announced that the Government is preparing measures to reduce the cost of living in Mozambique, including the elimination of VAT on essential products in the basic food basket and the review of fuel import duties.
“We are working to find various solutions. One of them is to remove VAT from the products in the Mozambican people's basic basket, such as rice, sugar, oil and beans, goods without which the population cannot go even a day without eating,” Chapo declared.
The announcement was made in Addis Ababa, Ethiopia, during his review of his participation in the 38th Summit of Heads of State and Government of the African Union.
Besides the VAT exemption, the Government is considering a reduction in fuel charges, a factor that directly affects the price of essential products and the overall cost of the economy.
“When fuel is expensive, it is the final consumer who pays, and that makes the whole economic chain more expensive,” explained the President.
Chapo acknowledged that Mozambique is not a fuel producer and that prices are influenced by external factors. However, he assured that it is possible to adjust components of the cost structure to ease prices for the end consumer.
