Mozambique Oil and gas: Taxation can support local industrial development

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Mozambique needs to adjust the tax regime applicable to the exploitation of oil and gas to its industrialization needs, to complement the provision of the Law on Mines and Petroleum, which obliges companies to allocate part of their production for electricity generation.

This was one of the challenges highlighted during the High Level Dialogue on Public Policies and Strategies for Development and Management of Oil, Gas and Mineral Resources in Mozambique, held yesterday in Maputo.

Speaking at the opening of the meeting, the Director of the Legal Bureau at the Ministry of Mineral Resources and Energy (MIREME), Maria Marcelina Joel, acknowledged that revenues generated from the exploitation of mineral and energy resources have still not met the needs of the public.

One of the direct impacts expected of the exploitation of these resources is the improvement of the living conditions of the communities living in the surrounding areas where the multinationals operate.

Although companies adopt corporate social responsibility policies, Maria Joel pointed out that these initiatives must be made effective in practical terms, so as to reduce social imbalances.

Even within the framework of the recommendations of the Extractive Industries Transparency Initiative (EITI), challenges continue in the fight against illegal mining, which takes place without the minimum technical safety requirements, in addition to the rise in mineral trafficking.

“It is imperative to strengthen supervisory capacity to combat the trafficking of minerals as well as the implementation of the Kimberley Process, that will operate in the commercial warehouses which will be the only exit routes of mineral products such as gems, stones and precious metals for commercialisation or for export purposes, ” she said.

In turn, the OXFAM representative Holger Wagner said that the use of revenues from the exploitation of mineral resources to meet collective needs such as education, health and employment must rely on long-term policies and strategies.

“The discovery of resources is an opportunity for reflection on the course of the country,” he said.

Source: Notícias

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