Mozambican government planned to propose the extension of the value-added tax (VAT) exemption law for essential products including cooking oil, sugar and soap until the end of this year, as a way to mitigate the impact of COVID-19 on the population.
The information was announced on Monday by the Minister of Economy and Finance, Adriano Maleiane, after a joint parliamentary hearing at the Assembly of the Republic in Maputo.
Some basic products benefit from VAT exemption law, but for cooking oil, sugar and soap, the deadline expired in December 2019, said the minister.
Maleiane admitted that some traders speculated on the prices for essential products at a time that those goods are most needed by the population.
“The government will reinforce inspection measures for commercial agents in order to make products being accessible at affordable prices,” he said.
The VAT exemption is aimed to stimulate the industry and the consumption of national products. Enditem