Economic and Social Plan and State Budget: Changes to the mining tax guarantee 1% of GDP in 2024
The government estimates that the changes to the implementation of the Specific Tax on Mining Activities (IPM) will make it possible to increase revenues by the equivalent of 1% of Gross Domestic Product (GDP) next year.
In the documents supporting the proposal for the Economic and Social Plan and State Budget (PESOE) for 2024, the Executive foresees the “consolidation of the tax revenue to be collected from” the IPM, “whose administration has become more efficient” with the approval of the reference price regulation, “for the purposes of determining the value of the mining product. This reform is expected to increase revenue by approximately 1% of GDP“.
This is a forecast of almost 11.5 billion meticais from the specific tax on mining and oil activities, of which, as provided for in the legislation in force, 10% will be applied to local community projects.
Also in the same sector, the Executive plans to monitor and inspect 300 mining titles throughout the country over the next year, as well as “supporting mining and artisanal exploration, transforming 15 mining associations into cooperatives and issuing 15 mining certificates”.
The aim is also “to carry out inspections to intensify control of the exploitation of mineral, oil and energy resources, as well as to carry out activities to track the production and marketing of precious metals and gems,” the executive says in the PESOE, which is being discussed in parliament.
