Mozambique’s President Chapo is contemplating the removal of VAT on essential goods and interventions to lower fuel prices to ease the cost of living. This comes amid protests linked to economic hardship and electoral disputes, with recommendations from business associations for further tax relief on necessities. The situation highlights significant unrest and public dissatisfaction regarding governance and employment opportunities.
President Daniel Chapo of Mozambique announced potential plans to remove Value Added Tax (VAT) on essential goods and to intervene in fuel pricing to alleviate the rising cost of living. Speaking in Addis Ababa at a press conference, he stated that eliminating VAT could help lower prices for basic necessities affecting the public.
Amid ongoing strikes and protests linked to electoral disputes and economic hardship, the government is assessing tax measures on essential products. The president emphasized the importance of addressing these economic challenges in upcoming Council of Ministers sessions.
Chapo also mentioned plans for government intervention regarding fuel prices, stating that fluctuations in fuel costs impact consumer pricing. He noted that since Mozambique does not produce fuel, the price depends on external factors, but efforts could be made to reduce fuel-related expenses.
He highlighted discussions with concessionaires to potentially subsidize tolls in Greater Maputo and initiatives for economic recovery aimed at small and medium-sized enterprises affected by post-election violence. Chapo stressed that these efforts require social and political stability, urging an end to vandalism.
The Confederation of Economic Associations of Mozambique (CTA) previously recommended VAT exemptions on key products like oil, soaps, and sugar to mitigate the effects of recent protests. The CTA reported significant disruptions, estimating over 500 companies affected and thousands left unemployed due to the unrest.
Protests since last October have led to alarming casualties, with reports indicating over 327 deaths, including minors, mainly driven by discontent over governance and economic opportunities. Calls for accountability in electoral processes have resonated particularly among young Mozambicans, exacerbating demands for employment and educational improvements.
In summary, President Chapo’s considerations to remove VAT on essential goods and reduce fuel prices aim to tackle the escalating cost of living in Mozambique amid widespread protests. With recommendations from the CTA for tax exemptions and ongoing governmental efforts to recover the economy, stability is deemed essential for these initiatives to succeed. Addressing public grievances effectively remains a critical challenge for the current administration.
Original Source: clubofmozambique.com
