The Mozambican government claims that mining companies declare less than their real production in order to obtain “very low” taxes.According to a government document, cited by the Portuguese news agency LUSA, the Mozambican authorities consider that “half of the exports that occur in Mozambique result from mining, however, this number of exports is not reflected in taxation, which is very low.”Recently, a prominent Mozambican NGO, the Centre for Democracy and Development (CDD), claimed that double taxation agreements in the extractive sector penalise the country.According to the research, in 2021 alone, Mozambique lost 315 million US dollars in double taxation agreements with two tax havens, namely Mauritius and the United Arab Emirates, an amount equivalent to 7.4 percent of the country’s tax revenue.“Government representatives relied on the latest report by the Extractive Industries Transparency Initiative (EITI), an international mechanism that measures transparency in the sector, to point out disparate results between the ores produced and those declared, disparity in sales prices between the different mining companies in Mozambique and sales prices practiced in the country with what is charged on the international market”, says the note.On the other hand, there are different models for declaring production and non-compliance with the Mining Law, the text reads.The executive noted the need to study mechanisms for processing minerals produced in Mozambique, such as graphite, heavy sands and coal. The processing of mineral products in the country would allow the creation of jobs and would contribute to industrialization.“In short, the Government demands valuation of all minerals produced in the country”, the document says.For their part, the companies advocated the involvement of the Chamber of Mines in the elaboration of regulatory instruments for the sector, construction of infrastructure for the flow of production and the supply of stable and reliable electricity to the industry.They also advocated greater coordination between the various government stakeholders in the export sector, with a view to avoiding contradictions in the interpretation of the rules governing the area.Operators also called for an end to export restrictions caused by the absence of a reference price at points of sale and purchase, and for product quality testing to be required at the export stage rather than at the production stage. (ICE MAPUTO)

Fonte notizia: AIM