The Tax Authority (AT) started, in 2017, the sealing of alcoholic beverages and manufactured tobacco, with the immediate objective of strengthening measures to control the smuggling of goods and, therefore, increase the collection of tax revenues. In the medium and long term, the AT intends to increase revenues from the Specific Consumption Tax (ICE) that is levied on products considered harmful to health and lower taxes that are levied on essential products, namely the Value Added Tax (VAT). Income Tax (IR) and Customs Duty (DA) on products originating in the Southern African Development Community (SADC) region. In Mozambique, compared to countries in the region, VAT is high, being just below Madagascar and Tanzania. Income taxes remain by far the main source of tax revenue for the State and the weight of the Personal Income Tax (IRPS), which affects the household budget, is almost half of the Income Tax on Legal Persons (IRPC). ).
This article evaluates the implementation of the sealing of alcoholic beverages, three years after the beginning of the reform. The evaluation does not include the sealing of manufactured tobacco. The main finding is that corruption in Mozambique's Customs is facilitating the smuggling of stamps, neutralizing inspection and jeopardizing the success of the reform.
