The Mozambique Government is revising the fiscal regime for petroleum and mining sec- tor. Tax Authority undertook public consultations on the draft Fiscal Laws on Petroleum and Minerals. This is a CIP input to this process which concludes that by consolidating patchwork laws and decrees, placing core terms in legislation, closing some loopholes and adding a resource rent tax to the mineral sector, these laws provide a strong foundation for the next generation of extractive sector exploration in Mozambique. Good fiscal terms and clear laws improve the chances that the government will actually get a fair share of the revenues, though experience from other resource rich developing countries suggests that actually collecting the appropriate amount of revenue will be a serious challenge given company tax avoidance strategies.
