Mozambique Tax Collection 2025: Shocking Forecasts & Unseen Revenue Drivers Revealed

Table of Contents

• Executive Summary: Key Insights for 2025 and Beyond
• Overview of Mozambique’s Tax System and Legal Framework
• Major Tax Types and Collection Mechanisms
• Key Players: Government Agencies and Their Roles
• 2025 Tax Revenue Projections: Growth Drivers and Barriers
• Compliance Challenges and Recent Regulatory Reforms
• Technological Innovations and Digitalization Initiatives
• Sectoral Analysis: Which Industries Lead in Tax Contributions?
• International Partnerships and Donor Involvement
• Future Outlook: Strategic Recommendations for 2025–2030
• Sources & References

Executive Summary: Key Insights for 2025 and Beyond

Mozambique’s tax collection landscape in 2025 is shaped by ongoing reforms, digitalization, and efforts to broaden the tax base in response to fiscal pressures and economic ambitions. The government, through the Autoridade Tributária de Moçambique (AT), has intensified measures to improve revenue mobilization, targeting both formal and informal sectors. In 2024, Mozambique launched enhanced electronic tax filing and payment systems, aiming to reduce compliance burdens and increase transparency. These systems are expected to mature in 2025, with the AT prioritizing taxpayer education and enforcement to boost voluntary compliance.

Recent legislative changes, including updates to the Value Added Tax (VAT) regime and corporate income tax adjustments, have been implemented to align with regional standards and strengthen revenue streams. The 2025 State Budget, approved by the Assembleia da República, sets ambitious tax revenue targets, reflecting the government’s commitment to fiscal consolidation and sustainable development. In 2023, tax revenues reached approximately 22% of GDP, and projections for 2025 anticipate a moderate increase, driven by enhanced compliance measures and continued economic recovery (Autoridade Tributária de Moçambique).

• Compliance and Enforcement: The AT has intensified audits and broadened the scope of its tax inspections, particularly in high-risk sectors such as natural resources and telecommunications. Penalties for non-compliance have been revised, and there is greater cooperation with the judiciary to address tax evasion and fraud (Procuradoria-Geral da República).
• Digitalization: The e-filing and e-payment platforms, rolled out nationally, are expected to cover 90% of large and medium taxpayers by 2025. These digital systems aim to minimize leakages and facilitate real-time monitoring of tax flows (Autoridade Tributária de Moçambique).
• Outlook: With Mozambique’s LNG sector entering production phases and ongoing infrastructure investments, tax collection is projected to rise. The government’s strategy includes further formalizing the informal sector and enhancing international tax cooperation, especially on transfer pricing and base erosion.

In summary, Mozambique’s tax collection framework for 2025 and beyond is marked by modernization, stricter enforcement, and expanding the tax net to underpin fiscal stability and finance development priorities. The successful implementation of these reforms will be crucial for meeting budgetary needs and supporting inclusive growth.

Overview of Mozambique’s Tax System and Legal Framework

Mozambique’s tax system is governed by a centralized legal framework, overseen primarily by the Autoridade Tributária de Moçambique (AT), under the supervision of the Ministry of Economy and Finance. The system relies on a combination of direct and indirect taxes, including corporate income tax (Imposto sobre o Rendimento das Pessoas Colectivas, IRPC), personal income tax (Imposto sobre o Rendimento das Pessoas Singulares, IRPS), value-added tax (Imposto sobre o Valor Acrescentado, IVA), customs duties, and specific consumption taxes.

Recent years have seen significant reforms aimed at improving tax collection efficiency and broadening the tax base. The government has prioritized digitalization of tax administration and compliance procedures. The launch and ongoing expansion of the electronic tax portal (e-tributação) have enabled online filing and payment for various tax categories, targeting increased transparency and reduced opportunities for evasion. Additionally, Mozambique has worked to align its tax laws with international best practices, particularly concerning Base Erosion and Profit Shifting (BEPS) and the implementation of transfer pricing regulations.

The legal framework for tax collection is anchored in the Código do Imposto sobre o Rendimento das Pessoas Colectivas (Corporate Tax Code), Código do Imposto sobre o Rendimento das Pessoas Singulares (Personal Tax Code), and the Código do IVA (VAT Code), as well as sector-specific statutes. These laws are periodically updated to address emerging economic realities and to support fiscal sustainability.

For 2025, the Mozambican government continues to prioritize revenue mobilization to meet budgetary needs and finance public investment. According to the Autoridade Tributária de Moçambique, tax revenue in 2023 reached approximately 24% of GDP, with projections indicating a gradual rise as compliance measures tighten and the formal sector expands. Customs revenues remain significant, particularly due to Mozambique’s strategic trade corridors and extractive industries.

Compliance remains a challenge, especially among small and informal businesses. In response, the government is intensifying taxpayer education and expanding the simplified tax regime (Imposto Simplificado para Pequenos Contribuintes, ISPC) to promote voluntary compliance. Enhanced audit capacity, risk-based monitoring, and inter-agency data sharing are also being deployed.

Looking ahead, Mozambique’s outlook for tax collection hinges on further digital transformation, robust enforcement of tax laws, and the successful integration of the informal sector into the tax net. Continued reforms and capacity building are expected to strengthen revenue performance and fiscal resilience through 2025 and beyond.

Major Tax Types and Collection Mechanisms

Mozambique’s tax collection system is administered primarily by the Mozambican Tax Authority (Autoridade Tributária de Moçambique) under the supervision of the Ministry of Economy and Finance. The principal tax types include Corporate Income Tax (Imposto sobre o Rendimento das Pessoas Colectivas, IRPC), Personal Income Tax (Imposto sobre o Rendimento das Pessoas Singulares, IRPS), Value Added Tax (Imposto sobre o Valor Acrescentado, IVA), customs duties, and various sector-specific levies.

• Corporate Income Tax (IRPC): The standard rate remains at 32% as of 2025, with lower rates for agriculture and certain investment projects. Collection is primarily through annual filings, advance payments, and withholding mechanisms as mandated by the Tax Authority.
• Personal Income Tax (IRPS): Individuals are subject to progressive rates up to 32%. Employment income is subject to withholding at source, while self-employed individuals must submit annual returns. Employers and financial institutions have key compliance roles in remitting withheld amounts.
• Value Added Tax (IVA): The general VAT rate is 17%. Businesses with annual turnover above MZN 2.5 million must register. Collection relies on monthly declarations and payments filed electronically through the official portal. VAT refunds remain a challenge, particularly for exporters, though reforms are underway to streamline the process.
• Customs Duties & Excise: The customs regime is governed by the Customs Code and administered at border points. Excise duties are imposed on fuel, tobacco, alcohol, and luxury goods, with rates and collection processes set by the Tax Authority.

Recent legal reforms focus on digitalization and broadening the tax base. The implementation of the e-Tax system (Sistema e-Tax) has expanded online filing and payment, which is expected to enhance compliance and reduce administrative bottlenecks. In 2023, tax revenue reached approximately 23% of GDP, with ongoing efforts to increase this ratio in line with IMF recommendations (Ministério da Economia e Finanças).

Looking ahead to 2025 and beyond, the Mozambican government aims to improve compliance, combat tax evasion, and modernize collection mechanisms. Legislative amendments are anticipated, especially concerning digital economy taxation and the mining and hydrocarbons sectors, reflecting Mozambique’s evolving economic landscape. Strengthened enforcement, enhanced taxpayer education, and continued investment in digital systems underpin the outlook for more robust and efficient tax collection in the coming years.

Key Players: Government Agencies and Their Roles

In 2025, tax collection in Mozambique is primarily overseen by a network of government agencies, each with distinct mandates that contribute to national fiscal stability and economic development. The central institution responsible for tax administration is the Autoridade Tributária de Moçambique (AT), established under Law No. 1/2006. The AT operates under the supervision of the Ministry of Economy and Finance and is tasked with the assessment, collection, and enforcement of taxes at both national and local levels.

The Autoridade Tributária de Moçambique manages key taxes including Value Added Tax (VAT), Corporate Income Tax (IRPC), Personal Income Tax (IRPS), and customs duties. It also oversees the implementation of tax policy, taxpayer registration, audit, and compliance activities. The AT has prioritized digitalization and modernization in recent years, with ongoing projects to improve electronic filing and payment systems, aiming to increase voluntary compliance and reduce collection costs through the e-Tax platform (“e-Tributação”).

The Ministério da Economia e Finanças (Ministry of Economy and Finance) is responsible for setting overall fiscal policy, proposing tax legislation, and coordinating with the AT on strategic tax reforms. The Ministry also plays a pivotal role in the annual preparation of the State Budget, projecting tax revenues, and ensuring that tax collection aligns with national development priorities.

• Customs Services: Within the AT, the Mozambique Customs (Alfândegas de Moçambique) administers customs duties and border taxes, playing a crucial role in the taxation of international trade and combating smuggling and illicit financial flows.
• Provincial and Local Tax Authorities: Subnational offices of the AT cooperate with municipal governments to collect certain local taxes, such as property taxes, market fees, and license levies, contributing to decentralized fiscal management.

Key trends for 2025 and the coming years include continued expansion of the taxpayer base, enhanced compliance monitoring, and a greater emphasis on digital platforms to curb evasion and improve efficiency. Legislative reforms are anticipated, particularly around transfer pricing and tax incentives, to align with international standards and foster foreign investment (Autoridade Tributária de Moçambique). The effectiveness of these agencies in harmonizing their roles will be essential for meeting Mozambique’s fiscal targets and supporting economic recovery and growth.

2025 Tax Revenue Projections: Growth Drivers and Barriers

In 2025, Mozambique’s tax collection landscape is expected to evolve under the combined influence of legislative reforms, economic trends, and administrative modernization. According to the 2024 State Budget Law, the government is prioritizing domestic resource mobilization to finance key sectors, with a projected increase in tax revenue as a share of GDP. The Mozambican Tax Authority (Autoridade Tributária de Moçambique, ATM) aims to further enhance compliance through a mix of digitalization, taxpayer education, and stricter enforcement measures.

Key growth drivers for tax revenue in 2025 include the anticipated commencement of liquefied natural gas (LNG) project operations, which will expand the corporate tax base and increase customs and VAT receipts from related imports and exports. Strategic amendments to the Value Added Tax Code and Excise Duty Law, implemented in late 2023, are expected to yield higher revenue from consumption taxes and improve VAT compliance. Furthermore, the ongoing implementation of electronic fiscal devices (EFDs) and electronic invoicing systems is designed to reduce informal sector leakage and strengthen audit trails, as mandated by the ATM’s digital transformation agenda Autoridade Tributária de Moçambique.

However, several barriers threaten to constrain revenue growth. Persistent informality, particularly among small and medium enterprises, continues to limit the tax base despite recent formalization incentives. The 2024 amendments to the General Tax Code introduced stricter penalties for non-compliance, but administrative capacity to enforce these provisions remains a challenge, especially outside major urban centers. Additionally, fluctuations in global commodity prices and potential delays in resource project timelines could dampen expected corporate income tax and royalties from extractive industries.

Statistically, ATM reported tax revenue collections equivalent to approximately 21% of GDP in 2023, with ambitions to reach 23% by 2025, aligning with targets set in the government’s Medium-Term Fiscal Framework Ministério da Economia e Finanças. Direct taxes (corporate and personal income tax) accounted for nearly 40% of total collections, while VAT and customs duties comprised the bulk of indirect tax receipts.

Looking ahead, the outlook for 2025 and beyond is cautiously optimistic. Efforts to expand the tax net, modernize collection systems, and leverage anticipated resource sector revenues are likely to drive moderate growth in tax receipts. However, realizing these gains will require sustained investment in tax administration, ongoing legal reforms, and measures to address informality and compliance gaps.

Compliance Challenges and Recent Regulatory Reforms

Mozambique’s tax collection system has undergone significant reforms in recent years, aiming to address persistent compliance challenges and enhance domestic resource mobilization. The primary authority responsible for tax administration is the Autoridade Tributária de Moçambique (ATM), which has implemented a series of regulatory measures to improve efficiency and compliance rates.

A major compliance challenge in Mozambique remains the large informal sector, which is estimated to account for over 60% of the economy. This undermines the tax base and complicates enforcement efforts, particularly in sectors such as retail, agriculture, and small-scale services. Additionally, there are ongoing issues with tax evasion, limited taxpayer education, and capacity constraints within tax administration. These challenges have contributed to historically low tax-to-GDP ratios, which stood at around 19% in 2023, below the Sub-Saharan African average.

To address these issues, Mozambique has enacted several regulatory reforms in the past two years. In 2023, the government introduced the new Imposto sobre o Valor Acrescentado (IVA) Code, adjusting VAT rates and clarifying exemption categories, with the intent of simplifying compliance and reducing fraud. Moreover, the electronic tax filing and payment system (e-Tax), first launched in 2021, has been expanded and now covers a broader range of taxpayers, including small and medium enterprises, in an effort to increase voluntary compliance and transparency.

Further, the 2024 State Budget Law introduced stricter penalties for non-compliance, including higher fines for late filing and non-payment, and it reinforced the requirement for large taxpayers to submit audited financial statements. The ATM has also intensified audit activities and taxpayer education campaigns, particularly targeting high-risk sectors and urban centers. These reforms are designed to deter evasion and foster a culture of compliance.

Statistical data from the Autoridade Tributária de Moçambique indicates a modest improvement in tax revenue collection in 2024, with a year-on-year increase of 8%. The government projects further growth in 2025, anticipating revenue gains from increased VAT compliance and expanded digital tax services.

Looking ahead, the outlook for tax collection in Mozambique is cautiously optimistic. The ATM’s strategic plan for 2025-2027 focuses on further digitalization, expanding the taxpayer register, and enhancing inter-agency cooperation to combat illicit financial flows. While systemic challenges persist—especially in integrating the informal sector—the ongoing regulatory reforms and modernization efforts are expected to gradually improve compliance rates and strengthen the country’s fiscal position.

Technological Innovations and Digitalization Initiatives

In recent years, Mozambique has accelerated the adoption of technological innovations and digitalization initiatives to enhance tax collection efficiency and compliance. The Autoridade Tributária de Moçambique (AT), the nation’s tax authority, has prioritized digital transformation as a cornerstone of its modernization strategy, with several key projects and reforms unfolding into 2025 and beyond.

A major development is the expansion and upgrade of the Integrated Tax Administration System (SIGTAS), which automates taxpayer registration, filing, assessment, and payment processes. As of 2024, SIGTAS is being rolled out nationwide, with the goal of achieving full coverage and improved interoperability with other government databases by 2025. This system enables electronic filing (e-filing) for corporate and personal income taxes, reducing administrative burdens and the risk of manual errors. The AT reports that e-filing adoption rates have steadily increased, with over 70% of large taxpayers now submitting returns electronically, a figure projected to rise further by 2026 (Autoridade Tributária de Moçambique).

Another significant initiative is the rollout of the Electronic Fiscal Device (EFD) program for Value Added Tax (VAT) compliance. EFDs—mandatory for qualifying businesses—automatically record sales transactions and transmit data in real time to the AT, significantly curbing VAT evasion and underreporting. In 2025, the AT plans to broaden the EFD requirement to additional business categories and regions, following the positive compliance impact seen since its initial implementation. Early results indicate an increase of up to 15% in VAT collections from sectors covered by EFDs (Autoridade Tributária de Moçambique).

Mozambique is also piloting digital payment platforms and mobile tax payment solutions to enhance inclusion and convenience, particularly for small businesses and taxpayers in rural areas. These digital channels are expected to reduce cash handling, streamline collections, and support real-time reconciliation of payments.

Looking ahead, the government has committed to further investments in digital infrastructure and cybersecurity to support tax digitalization. The AT’s 2024–2027 strategic plan identifies artificial intelligence (AI)-driven risk analysis and taxpayer segmentation as emerging priorities, aiming to optimize audit selection and tailor taxpayer services (Autoridade Tributária de Moçambique).

These technological innovations are expected to boost tax revenue, improve compliance, and foster a culture of voluntary tax payment in Mozambique, positioning the country for more robust and transparent fiscal management into 2025 and beyond.

Sectoral Analysis: Which Industries Lead in Tax Contributions?

In Mozambique, tax collection is significantly influenced by the contributions of key economic sectors, with mining, hydrocarbons, telecommunications, and banking standing out as primary sources of government revenue. As the country enters 2025, these industries continue to shape the fiscal landscape, both through direct taxation and indirect contributions such as Value Added Tax (VAT) and withholding taxes.

The extractive sector, particularly coal and natural gas, remains the dominant contributor to tax revenues. Major projects operated by international consortia, such as the LNG developments in Cabo Delgado, have led to substantial inflows from corporate income tax, production sharing agreements, and capital gains tax on asset transactions. According to the Autoridade Tributária de Moçambique, the extractive industries accounted for nearly 33% of total tax proceeds in 2023, a figure expected to grow as new phases of gas production come online by 2025.

The banking and financial services sector is another critical player. With a rapidly expanding market and increased regulatory oversight, banks contribute significantly through corporate taxes and the recently implemented stamp duty on financial transactions. The Banco de Moçambique reports steady growth in sectoral profitability, which has translated into higher effective tax payments in recent years.

Telecommunications firms, led by major operators such as Vodacom and Movitel, also represent a vital revenue stream. Subject to both corporate tax and sector-specific levies, telecoms have consistently ranked among the top five taxpayers nationally. The Instituto Nacional das Comunicações de Moçambique attributes this trend to the continued expansion of mobile and broadband services, driving up both turnover and taxable profits.

Agriculture, traditionally Mozambique’s largest employer, contributes less in direct taxes due to widespread exemptions and the predominance of smallholder farming. However, commercial agribusinesses are increasingly subject to VAT, customs duties, and corporate taxes as the government seeks to broaden the tax base.

Looking forward, the government has signaled its intention to enhance tax compliance and sectoral transparency. The implementation of the new VAT Code (effective 2024) and digital tax administration systems are expected to improve collection efficiency, particularly in sectors with complex supply chains. Official targets outlined by the Ministério da Economia e Finanças project tax revenue to reach 22% of GDP by 2026, with continued reliance on extractives, finance, and telecoms as principal contributors.

International Partnerships and Donor Involvement

International partnerships and donor involvement remain pivotal in supporting Mozambique’s efforts to strengthen tax collection, particularly as the country seeks to expand its fiscal capacity in line with its medium-term development strategies. The Government of Mozambique, through the Autoridade Tributária de Moçambique (ATM), has continued to work closely with international organizations and bilateral donors to modernize its tax administration, improve compliance, and combat tax evasion.

A cornerstone of this collaboration is Mozambique’s engagement with the International Monetary Fund (IMF), which since 2022 has provided technical assistance under the Extended Credit Facility (ECF) arrangement. Key reforms supported by the IMF include the digitalization of tax processes, the introduction of e-filing systems, and measures to broaden the tax base. The IMF’s 2024 review notes tangible progress in tax revenue mobilization, with tax revenue rising to approximately 15% of GDP in 2023, up from 13.5% in 2021, but also highlights ongoing challenges in compliance and enforcement.

The World Bank is another major partner, providing both financial and technical support. Its ongoing projects focus on enhancing public financial management, transparency, and the capacity of the ATM. In 2023–2025, the World Bank’s Public Financial Management for Results Program continued to assist ATM in strengthening audit mechanisms and risk-based compliance strategies, aiming to reduce tax-related leakages and improve voluntary compliance rates.

The European Union (EU) has also been instrumental, channeling budget support and targeted technical assistance to Mozambique’s tax authorities. Under the 2021–2027 Multiannual Indicative Programme, the EU emphasizes domestic revenue mobilization as a key pillar for sustainable development, with initiatives specifically targeting VAT administration and cross-border tax cooperation (Delegation of the European Union to Mozambique).

Additionally, Mozambique participates in regional initiatives under the auspices of the Southern African Development Community (SADC) and the African Tax Administration Forum, fostering knowledge exchange and harmonization of tax practices.

Looking ahead to 2025 and beyond, international partners are expected to maintain or expand their involvement, contingent on Mozambique’s progress in governance and transparency. Ongoing donor support is likely to prioritize digitalization, capacity building, and measures to tackle the informal sector, all crucial for raising tax collection ratios towards regional benchmarks.

Future Outlook: Strategic Recommendations for 2025–2030

Mozambique’s tax collection system faces both persistent challenges and significant opportunities as the country looks toward the 2025–2030 period. Recent years have seen steady progress in tax law reform and administrative modernization, yet obstacles such as a sizable informal sector, limited tax base, and compliance gaps persist. For the coming years, strategic recommendations must focus on enhancing revenue mobilization, supporting economic growth, and ensuring fiscal sustainability.

• Strengthen Digitalization and Tax Administration Capacity: The Autoridade Tributária de Moçambique (ATM) has made efforts to digitalize tax processes, including the introduction of electronic filing and payment systems. Expanding these initiatives—such as the ongoing e-Tax platform and digital taxpayer registration—will reduce compliance costs, increase transparency, and curb evasion. Investment in capacity-building for tax officials, particularly in data analytics and risk-based auditing, remains crucial (Autoridade Tributária de Moçambique).
• Broaden the Tax Base: Mozambique’s tax-to-GDP ratio hovers around 20%, reflecting both recent gains and the need for further expansion (International Monetary Fund). Policy reforms should target sectors with low compliance, including the informal economy and extractive industries. Simplified tax regimes and targeted incentives can encourage formalization, while robust enforcement and audit measures will deter evasion.
• Enhance Compliance and Public Awareness: Low voluntary compliance, often due to limited taxpayer education and perceived complexity, continues to undermine collection. The ATM should intensify public outreach, taxpayer education, and the use of pre-filled returns for small taxpayers. Streamlining dispute resolution and improving service delivery can also foster a more cooperative tax culture (Autoridade Tributária de Moçambique).
• Policy and Legal Framework Updates: Continued alignment with international tax standards—such as the OECD’s Base Erosion and Profit Shifting (BEPS) actions—and modernizing key tax laws, including VAT and corporate income tax, will help Mozambique remain attractive to investors while safeguarding revenues. Legislative updates should also address digital economy taxation and transfer pricing (OECD).
• Leverage Extractive Sector Revenues: With major LNG projects set to resume, robust mechanisms to monitor and tax extractive sector income are essential. Transparent revenue management and ring-fencing of resource-related taxes can help stabilize public finances and support development goals (Autoridade Tributária de Moçambique).

By prioritizing these strategic actions, Mozambique is positioned to improve tax collection efficiency and effectiveness, laying the groundwork for sustainable fiscal health through 2025–2030.

Sources & References

• Assembleia da República
• Instituto Nacional das Comunicações de Moçambique
• World Bank
• Delegation of the European Union to Mozambique
• Southern African Development Community (SADC)