In 2024, Mozambique’s tax authorities recovered over 110.7 million meticais in debts and conducted 246 seizures. However, the total state revenue was only 89.9% of the planned target, reflecting challenges faced throughout the year. The government is renewing the state budget due to approaching elections and is dealing with ongoing social unrest that has resulted in significant violence and fatalities.
In 2024, the Mozambican tax authorities effectively recovered over 110.7 million meticais (€1.6 million) in tax debts and executed nearly 250 seizures. According to government reports on budget execution, there was a noticeable advancement in tax debt recovery rates this year, with the authorities executing 246 seizures totaling 38,377,600 meticais (€553,000). The recovery recorded indicates an increase in efforts compared to the prior year, despite the overall revenue remaining below target.
The total revenue collected by the Mozambican state for 2024 stood at approximately 344,836 million meticais (€5.177 million), marking an achievement of only 89.9% of the planned collection target. In contrast, the previous year’s collection reached 91.8% of its targets. This discrepancy is attributed to various challenges faced throughout the year, as noted by Inocêncio Impissa, the Council of Ministers spokesperson.
Moreover, total state expenditures in 2024 amounted to just over 493,356 million meticais (€7,403 million), achieving 86.9% of the budget. This is a notable decrease from 100% of planned expenditures in 2023. Due to the upcoming general elections set for October 9, the government decided to renew the 2024 State Budget in twelfths, with plans to approve the 2025 budget during the first half of 2024.
Additionally, Mozambique has been enduring severe social unrest since October 21 of the previous year, which erupted post-election. Protests and strikes have escalated into violent clashes with law enforcement, leading to over 357 fatalities and around 800 gunshot injuries, as well as extensive looting and damage to public and private property.
In summary, the Mozambican tax authorities made commendable efforts to recover tax debts in 2024, albeit with revenues falling short of targets. The government’s proactive measures in budget execution and adjustments in light of societal unrest indicate a focus on fiscal responsibility amidst challenges. The ongoing social turmoil following the recent elections highlights the complexity of the nation’s economic and political landscape.
Original Source: clubofmozambique.com
