In the context of resumption of the International Monetary Fund (IMF) programme in Mozambique, in which a funding package of US$ 470 million was approved, CIP learnt through the media that the Minister of Economy and Finance an- nounced that one of the objectives of the Executive is to “eliminate tax exemptions from Value Added Tax (VAT) because they do not benefit those who need it most”.
Despite this, CIP partially agrees with this measure because it understands that there are certain exemptions, as in the case of the health and education sectors, which cannot be eliminated in their entirety and without any measure to isolate certain groups. Even so, it draws attention to the fact that with the elimination of exemptions it is more than urgent to reduce the VAT rate in order to minimize the impact on the cost of living, which is already high.
