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On the right path

Mozambique begins the year with the intention of increasing its revenues through a tax forgiveness project, coupled with a reduction on public spending by eliminating the so-called 'ghost workers' from its payroll.

New year new life, namely for the Mozambican economy that is expected to thrive in the year 2019.

The Mozambican Tax Authority (TA) is developing a project to grant a pardon of fines, interest and other legal obligations arising from tax debts to its taxpayers.

The TA has decided to justify this measure, which is always a measure that does not require a lot of justifications, at least for those in the position of debtor who has been pardoned, stating that it is intended to reduce the high number of cases accumulated in the courts of tax foreclosures, thereby allowing a more efficient collection of other due debts.

Although it may seem a paradox, the logic of the lesser evil prevails, therefore by abandon a certain number of debts so that others may be obtained, perhaps of higher value and / or more pressing, and that otherwise, would not be charged.

The rationale underlying this measure is thus apparently justified, but it lacks the approval of the Assembly of the Republic to ensure that all the principles at stake are considered.

In parallel, 30,000 'ghost workers' were eliminated from the payroll of the Mozambican government. The State expects to reduce its spending by approximately 15 billion meticais (211 million euros) annually, as presented by the Director of Planning and Cooperation, Candida Moiane.

According to the said Director, the payment of those amounts was unduly paid and in certain cases there were workers who received the sum equivalent to the salary of three officials. These irregularities are being analyzed since August last year.

In short, measures such as those mentioned contribute to an overall budgetary discipline that permit a development of the Mozambican economy.