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Mozambique’s High Digital Tax

There is a 32% corporate tax rate imposed on telecommunications operators and other companies operating in Mozambique which is higher than in many other countries. Furthermore the loss of revenue from the reduction of customs duty on telecommunications equipment would be offset by the increase in VAT revenue generated by the growth of legal imports of telecommunications devices. Governments can no longer consider the telecommunications sector as a single separate aspect of a country’s economy but rather as a sector that intersects with all other sectors and as such, an increase of growth in the telecommunications sector results in the growth and expansion of all other sectors.


In 2015 the Alliance for Affordable Internet (A4AI) published a report on the status of digital taxation in Mozambique. A4AI proposed that the taxation rate of 7.5% imposed on telecommunications equipment be reduced to 2.5% which would in turn stimulate investment in ICT infrastructure. The reduction  is described as a strategic policy initiative that not only optimizes the tax regime to support broad economic growth across all sectors, but also increases job creation, tax revenues and social development in the country. Furthermore the loss of revenue from the reduction of customs duty on telecommunications equipment would be offset by the increase in VAT revenue generated by the growth of legal imports of telecommunications devices.


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