Tax Reform and the Business Environment
Tax Reform and the Business Environment in Mozambique: A Review of Private-Sector Concerns (Bolnick, 2004)
The Mozambique government has been pursuing a comprehensive tax reform program to modernize and strengthen the tax system. Yet many business leaders express deep concern about adverse effects of the reforms on private sector development. This paper examines the tax system in light of these concerns, with a focus on the income tax and the value added tax.
The analysis endorses the overall direction of the tax reform program, but also finds that the concerns of the private sector merit serious attention. The paper recommends measures to address these problems, so that the tax system can raise the necessary revenue while better facilitating private sector development, efficient investment, and job creation.