In 2024, Mozambican tax authorities recovered over 110.7 million meticais while conducting nearly 250 seizures. Despite this, state revenue collected was below target at approximately 344,836 million meticais. Government expenditures also reflected a decline, leading to the renewal of the state budget amid ongoing social unrest following elections.
In 2024, the Mozambican tax authorities successfully recovered over 110.7 million meticais (approximately €1.6 million) in tax debts and conducted nearly 250 seizures. This accomplishment reflects progress in tax debt recovery rates, with the 246 seizures alone totaling 38,377,600 meticais (about €553,000) as reported in budget execution data from January to December.
Despite these recoveries, the overall revenue collection for the Mozambican state fell short of its targets, amounting to approximately 344,836 million meticais (€5,177 million) in 2024. The tax authority achieved 89.9% of its revenue target this year, a slight decline from 91.8% in 2023.
The spokesperson for the Council of Ministers, Inocêncio Impissa, acknowledged that 2024 was marked by numerous challenges. Consequently, the government’s total expenditure for the year reached just over 493,356 million meticais (€7,403 million), achieving only 86.9% of the planned budget, contrasting with the full achievement of 100% in the previous year.
In response to ongoing challenges, the Mozambican government opted to “renew” the 2024 State Budget in monthly installments. This decision is linked to the general elections scheduled for October 9, with the 2025 budget expected to be approved in the first half of the upcoming year.
The socio-political climate in Mozambique has been volatile since October 21, following the elections. Violent protests have erupted, leading to clashes with law enforcement and resulting in at least 357 fatalities, nearly 800 gunshot injuries, and widespread looting and destruction of both public and private property.
In summary, the Mozambican tax authorities made significant strides in tax debt recovery in 2024, despite overall revenue collection falling short of targets. Challenges encountered during the year also led to reduced government expenditures, prompting a restructuring of the budget in anticipation of upcoming elections. The socio-political unrest further complicates the economic landscape.
Original Source: clubofmozambique.com
