In 2024, Mozambique’s tax authorities recovered over 110 million meticais and enacted 250 seizures, despite total revenues falling short of targets at 89.9%. Government expenditure was also below previous performance. The country endures significant social unrest following recent elections, complicating fiscal efforts.
In 2024, the Mozambican tax authorities made significant strides in debt recovery, amassing over 110.7 million meticais (€1.6 million) and executing close to 250 seizures. According to governmental reports, there was an overall enhancement in the rates of tax debt recovery this year, with a total of 246 seizures amounting to 38,377,600 meticais (€553,000). Furthermore, the report highlighted that 110,781,150 meticais were retrieved, attributed to increased efforts to recover outstanding tax debts.
Despite these advancements in debt recovery, the revenue collected by the Mozambican state for 2024 remained below expectations. Total revenues reached approximately 344,836 million meticais (€5,177 million), corresponding to just 89.9% of the target set for the year, contrasting with the 91.8% of targets achieved in the previous year. This trend showcases ongoing fiscal challenges the government must overcome.
Inocêncio Impissa, spokesperson for the Council of Ministers, reflected on the adverse conditions faced in 2024, describing it as a year filled with numerous challenges. He presented the Economic and Social Plan and State Budget (PESOE) execution data, noting that total state expenditure for this year was just over 493,356 million meticais (€7,403 million), equating to 86.9% of the originally planned budget.
The Mozambican government has chosen to postpone the full completion of the 2024 State Budget in anticipation of general elections set for October 9. The Ministry of Economy and Finance has instructed that expenditures under the PESOE for 2024 be executed in twelfths until the approval of the 2025 budget. Since late 2022, violent post-election unrest in Mozambique has resulted in numerous casualties, illustrating the challenging political and social climate in the country.
The Mozambican tax authorities have made headway in debt recovery in 2024, securing significant amounts despite facing fiscal challenges. Overall revenue fell short of targets, leading to a renewed focus on expenditure management as the government prepares for upcoming elections. The prevailing unrest signals ongoing social tensions that could impact future economic conditions.
Original Source: clubofmozambique.com
