Parliament Unanimously Extends VAT Exemption on Essential Goods (Sugar, Edible Oils and Soap) Until December

Mozambique’s Assembly of the Republic unanimously approved extending the VAT exemption on commercial transfers of sugar, edible oils, and soaps, along with raw materials and equipment used in their production, until December 31, 2025, to support economic growth.
Finance Minister Carla Louveira stated that the VAT exemption aims to stimulate national economic growth, lower production costs, and enhance citizens’ purchasing power by making essential goods more affordable for consumers and manufacturers alike.
The government’s decision to maintain the VAT exemption will result in over two billion meticais in foregone state revenue this year, reflecting a strategic trade-off to boost domestic consumption and industry.

Exemption Rate