In 2019, the Government, through the State Budget (SB) has expressed its intention to review the Specific Regimes of Taxation and Tax Benefits for Petroleum Operations and Mining Activities as a way to consolidate the reforms now underway and boost the capture of tax revenues. Although, two years later¸ the same fiscal benefits regime of 2017, Laws 14 and 15/2017 of December 28, remains in force, in a context in which tax benefits reached 24.9 billion meticais in 2019, which corresponds to about 3% of GDP in the same year and a growth in 34.6% compared to the previous year.
In the period from 2010 to 2019, fiscal benefits cost the country 172.6 billion meticais. This value corresponds to 11.4% of all revenue collected in that period. In this period, the fiscal contribution of mega-projects was 100.3 billion meticais, which allows us to conclude that the cost of fiscal benefits in this period was 72.3 billion meticais.
In this context, CIP urgently recommends the review of the Specific Regimes of Taxation and Fiscal Benefits of Petroleum Operations and Mining Activity.
