VALUE-ADDED TAX

Mozambique announces VAT exemptions as consumers struggle with costs

By our African Marketing Confederation News Team | 2025

Temporary tax relief on sugar, soap and edible oil products, as well as for the industries producing certain consumer goods.

As ordinary Mozambicans struggle with the high cost of living, the country’s government has moved to provide some relief to its citizens by exempting certain consumer items from value-added tax.

Photo by Towfiqu Barbhuiya from Pexels

VAT on goods such as sugar, edible oils and soaps will not be in force for the remainder of 2025. The exemption also applies to raw materials, intermediate products, parts, equipment and components used by businesses operating in the national sugar and soap industries. 

 

“The move aims to reduce living costs and support economic growth. President Daniel Chapo explained that these measures are intended to improve citizens’ daily lives and help businesses by easing access to key products,” reports the radio station Channel Africa. 

 

Said the President in a message published on his official account on the social media platform X: “As we have always said, it is our primary duty to serve our people, improve their living conditions and, together, work to boost our economy.” 

 

Decision made by country’s cabinet 

 

The decision was taken following a cabinet meeting held at Pemba in the north of the country. 

 

Mozambique’s standard VAT rate is 16% – reduced from 17% in 2023 – although there are certain selected items that are subject to a reduced rate of 5%. 

 

According to a report by news agency Lusa, Mozambique’s main business association said that the president’s intention to go ahead with measures to reduce the cost of living was “wise and timely” and would contribute to “social peace” in the country.  

 

The country has struggled with social unrest since last October’s general elections. While people have contested the election results, there have also been protests over the high cost of living and lack of jobs.

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Rozanne
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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.