>
>
>
>
Taxation in the Agricultural Sector in Mozambique

Taxation in the Agricultural Sector in Mozambique - An Analysis of VAT Exemptions and Other Tax Issues

The requirement of “documented expenses” for income tax purposes and the “taxa liberatoria” are the two biggest tax issues adversely affecting the agricultural sector. The income of thousands of smallholder farmers and the agriculture production of these farmers could be protected by dealing with this issue. If these issues are not dealt with soon, the market for small farmers could drastically diminish. If these problems are not addressed, it may become cheaper for firms to import agricultural products than buy from local farmers. In fact, there are reports that maize is now exported to Malawi where the produce is properly documented and then it is re-imported into Mozambique. This arises because buyers cannot legally buy from unregistered farmers without paying substantial taxes, either through the 20% “taxa liberatoria” or through fines that increase costs 67 percent.

Taxation in the Agricultural Sector in Mozambique

Taxation in the Agricultural Sector in Mozambique - Executive Summary (portugues)

Tributacao no Sector Agricola em Mocambique DRAFT (port)

The information provided on this Web site is not official U.S. Government information and does not represent the views or positions of the U.S. Agency for International Development or the U.S. Government. This website is made possible by the support of the American People through the United States Agency for International Development (USAID.) The contents of this website are the sole responsibility of Nathan Associates Inc. and do not necessarily reflect the views of USAID or the United States Government