Mozambique Oil & Gas: Major business association question tax exemptions for Anadarko, ENI

The Confederation of Mozambican Economic Associations (CTA), Mozambique’s largest employers’ association, is questioning the tax exemptions granted by the government to multinationals involved in the exploitation of natural resources.

Speaking at a press conference on Tuesday, CTA vice president Castigo Nhamane said that the organisation had received letters from its members questioning the reasonableness of the government granting tax exemptions to multinationals at a time when the country was facing economic and financial difficulties.

“The CTA has received several letters from business people who question the government’s recent approval of 30-year tax exemptions in favour of ENI and Anadarko, because this issue is part of a range of measures we propose to evaluate,” said Castigo Nhamane.

The CTA, he continued, advocated the participation of all in trying to find solutions to the current challenges, including major projects.

Last week, the Assembly of the Republic approved changes to tax legislation, including the granting of tax exemptions to consortiums led by Italian multinationals Eni and North American Anadarko, which will explore natural gas in the Rovuma basin, north of Mozambique.

The two concessionaires had already benefited from tax exemptions in the hydrocarbons prospecting and exploration phase in the Rovuma basin. Source: Lusa