Mozambique: End of VAT exemption affects sugar sector

The end of Value Added Tax (VAT) exemption is negatively affecting the sugar sector and putting pressure on prices and sales. The executive director of the Association of Sugar Producers of Mozambique (APAMO), Orlando da Conceição, believes that the sector needs to remain exempt from VAT in order to remain sustainable. The statement corroborates the position of the Confederation of Economic Associations of Mozambique (CTA), which argues that the reinstatement of the exemption could mitigate the impact of post-election demonstrations on companies. “We tried for a year to work to get the VAT exemption maintained, because the industry still needs incentives. We tried with the Ministry of Economy and Finance, the parliament, but we were unsuccessful. We accepted because it is the government’s position, but it will affect our financial and cash management,” da Conceição points out. Orlando da Conceição explained that the end of the VAT exemption has become an additional direct ...