- Value Added Tax (VAT) has been re-imposed on soap, sugar, and cooking oil in Mozambique.
- The Mozambican Tax Authority (AT) confirmed the end of the 17-year exemption on these goods.
- The exemption was initially introduced in 2007 to ease the cost of living and protect local industries.
- The exemption was renewed in 2020 but has now expired, resulting in a 16% VAT on these products.
- Prices have already increased in shops and markets, with traders attributing it to the re-imposition of VAT.
- The end of the exemption is expected to impact the inflation rate as these goods are essential for most households.
Source: aimnews.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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