Moz govt suspends fuel tax

2008-06-21 19:43

Maputo - The Mozambican government is to temporarily suspended customs duties and value added tax on all imported fuel products, state media reported on Saturday.

This was part of a bid to cushion consumers from the impacts of high international oil prices.

The daily Noticias quoted Energy Minister Salvador Namburete as saying that the measure was taken after the government noted that companies were failing to keep reserve stocks because of the high prices they paid for fuel on the international market.

The waiver on the taxes and duties would come into effect from next month.

As a result of the waiver, the Mozambican government would loose at least $6m in unpaid taxes between July and December this year.

The measure would also help the rural population buy illuminating paraffin which they mostly used for lighting.

"If the fuel crisis continues the government will maintain the suspension of the payment of these taxes and after the crisis we will see how we will re-implement the taxes," Namburete told the paper.

At the moment fuel importers paid value added tax of 17%.

- SAPA