APIA starts its work in support of redistributive tax policies in Mozambique

Within the framework of the APIA Programme in Support of Inclusive Public Policies in Africa, an action has been started to support the tax authority of Mozambique in its analysis of the Mozambican tax system, with special emphasis on formulas to guarantee its redistributive nature.

Over the week of 23rd to 27th March 2015, two experts from the Spanish Institute for Tax Studies (IEF) will participate in a first mission in Maputo for the purpose of preparing a diagnosis of the redistributive effects of Mozambique’s current tax system. During this mission, meetings will be held with different Mozambican institutions: the Tax Authority, the National Institute for Statistics, the Institute for Social and Economic Studies (IESE), the Ministry of Finance, and the Ministry of Mineral Resources, among other stakeholders.

This first visit will be complemented with diverse activities oriented towards strengthening the knowledge and tools Mozambican authorities have for properly responding to growing challenges in the area of taxation. In a context of sustained economic growth, tax collection rates have gone from 5% of GDP to 22% in seven years; the challenge for Mozambique is to consolidate a tax system that makes it possible to capture and mobilise internal resources in the service of inclusive development policies.

This project is the first to be implemented within the framework of the APIA Programme, officially presented on 5th Februaryand managed jointly by the AECID and FIIAPP.

One of the objectives of the programme is to provide support to African countries in the mobilisation of internal and external resources for their development policies.