Source: Macauhub

Large extractive industry projects in Mozambique contributed 73.3 billion meticais (US$1.118 billion) to the country’s tax revenue in 2019, five times higher than the amount recorded in 2018, according to the Budget Execution report.

The document said the State riased tax revenue of 276 billion meticais, and large extractive industry projects contributed 26.5% of the amount collected.

Capital gains tax in the amount of 54.1 billion meticais or US$880 million, from the sale of the assets of oil company Anadarko Petroleum, in the Area 1 block of the Rovuma basin, to France’s Total, contributed the most to the tax provided by major projects in the period under review.

Omitting this extraordinary income, the mining and minerals sector and other large projects, recorded declines of 20.9% and 13.8%, respectively, as a result of the fall in the price of coal on the international market.

Daily newspaper O País also reported that the communities located in the areas of major projects in 2019 benefited from, “just 83.4 million meticais of the revenues generated by mining and oil extraction.”

This transfer complies with Law No.15/2018 of 20 December, approving the State Budget for 2019, which set a percentage of 2.75% of the revenues generated by mining and oil,”for programmes focused on the development of the communities in the areas where the respective enterprises are located,” pursuant to Article 20 of Law no. 20/2014 and of Article 48 of Law no. 21/2014, both of 18 August.