Supporting the Policy Environment for Economic Development
SPEED+

Simplifying Taxation

The Autonomous Tax is a 35 percent tax imposed on companies that cannot prove how much they paid for their raw materials, because the producers aren’t registered in the tax system and do not give receipts.  For agriculture traders, this means paying an additional 35 percent tax if they buy directly from smallholder farmers.  SPEED+ facilitated a dynamic partnership between key players at the Tax Authority and the Confederation of Business Associations (CTA) which is now examining multiple innovative solutions, generated from joint field research that brought to light the simple realization that the vast majority of smallholders fall far below the minimum income requirement for tax registration.  SPEED+ will continue to support this partnership so that tax code reforms can remove this obstacle to growth for Mozambique’s 5 million smallholder farmers.