CHAPTER ONE: THE VAT

INTRODUCTION

In a study for CTA and USAID/SPEED, Hipólito Hamela identified ways in which the VAT in Mozambique may be adversely affecting the agricultural sector, which comprises approximately 25% of GDP in Mozambique (Hamela, 7). In particular, he discovered an issue arising from purchases from farmers with no taxpayer identification number, or NUIT.

I was tasked with analyzing the effects of various exemptions and zero-rating on agricultural production in Mozambique, as well as other tax issues which might be impacting agricultural costs, including the “taxa liberatoria”, an income withholding tax.

click here to download full file