“Fair and Efficient Taxation: A Way to Break the Natural Resource Curse in Mozambique?”

Today 4 July 2023 the Fair Tax Monitor report was launched in Maputo, Mozambique. Mozambique is rich in natural resources such as coal, gas and minerals. Despite this it has one of the lowest human development index ratings, rankin 185th out of 191 countries.

(Nelsa Langa of Center for Democracy and Human Rights (CDD) speaking with journalists)

Oxfam, Tax Justice Network Africa (TJNA) and partners around the world have developed the Fair Tax Monitor (FTM) methodology. Through the FTM partner organizations conduct research and evaluate tax systems. The FTM pays particular attention to reducing inequality, combating poverty and promoting sustainable development. With the FTM work Oxfam and TJNA aim to empower citizens and civil society organizations to actively participate in tax policy-making processes and fostering public dialogue between different stakeholders. Because of Mozambiques abundance in natural resources this study had a particular focus on the extractive sector.

Mozambique’s extractive sector has the potential to generate significant revenue, which can be instrumental in funding essential services, such as education and healthcare. However, the challenge lies in ensuring that this revenue is harnessed in a fair and transparent manner, ultimately contributing to the well-being of the entire population. The report points out that while significant progress has been made in extractive industry (EI) governance in Mozambique, this should not divert attention from te serious deficiencies and gaps that must still be filled to ensure that Mozambique can ensure an EI regime that benefits everyone in society. The report elaborates key recommendations for progress that can be made with regards to increasing transparency, reducing tax incentives, securing revenue sharing with affected communities and revision of harmful tax treaties.

You can download the report here