In 2019, the Government, through the State Budget (OE)¸ expressed its intention to review the Specific Taxation Regimes and Tax Benefits of Petroleum Operations and Mining Activity as a way to consolidate the reforms now underway and boost revenue collection tax. However, two years later, the same tax benefits regime as 2017, Laws no.O 14 and 15/2017 of December 28, in a context in which tax benefits reached 24.9 billion meticais in 2019, which corresponds to around 3% of GDP in the same year and a growth of 34.6% compared to the last year.
In the period from 2010 to 2019, tax benefits cost the country 172.6 billion meticais. This amount corresponds to 11.4% of all revenue collected in that period. During this period, the fiscal contribution of megaprojects was 100.3 billion meticais, which allows us to conclude that the cost of tax benefits in this period was 72.3 billion meticais.
In this context, the CIP urgently recommends the revision of the Specific Taxation Regimes and Tax Benefits for Petroleum Operations and Mining Activities.
