Mozambique Mining: Extractive industry accounts for 4.1& of country GDP

vale-employees-regard-the-stocking-yard-credits-marcelo-coelho-vale
Vale employees regarding the stocking yard (Credits – Marcelo Coelho – Vale SA)

Mozambique is experiencing a growth in the extractive industry’s contributions to the national gross domestic product (GDP). Updated figures indicate that, in taxation alone, this sector currently contributes 4.1 percent. In the past, the contribution was 0.4 percent.

This information was imparted yesterday by the Director-General of Taxes, Augusto Tacarindua, who noted that recent record-breaking contributions from the oil and gas sector had significantly increased state revenues.

Tacarindua was speaking at the opening of the seminar on extractive industry taxation which brought together stakeholders in the sector including the tax administration, taxpayers, civil society organisations, academics and specialists in foreign taxation to discuss the taxation of oil and natural gas industries over the course of two days.

Changes in legislation in this area are being brought in to bring the country into line with international standards, he noted. “The country has been carrying out reforms in the legislation applicable to the sector in order to create convenience for investors and to adapt it to international good practices, but also for a fair and transparent sharing between operators in the extractive sector and the state,” he explained.

Dan Witt, co-organiser of the seminar, said that it was important for the country to work towards developing a more transparent legislative framework in order to protect the inheritance of future generations.

The seminar will see the attendance of officials from the Mozambique Tax Authority, the Ministry of Economy and Finance, the National Petroleum Institute, the Ministry of Mineral Resources and Energy and the Bank of Mozambique. Source: Folha de Maputo

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