The Government has just launched the Economic Acceleration Package for Mozambique (PMAE) with a view to foster the resumption of economic growth. Among the PMAE measures we highlight the following:

• Reduction of the VAT rate from 17% to 16%;
• Reduction of the CIT rate from 32% to 10% for agriculture, aquaculture and urban transport;
• Reduction of the CIT withholding rate from 20% to 10% on income obtained by non-resident entities from services provided to Mozambican entities operating in the agriculture sector;
• Withholding tax exemption on interest on foreign loans for agricultural projects;
• Tax incentives for new investments in key sectors carried out in the next three years, notably in the agriculture, agro-processing, manufacturing, tourism and urban transport sectors;
• VAT exemption on imports of production goods for agriculture and electrification;
• Simplification of the procedures for repatriation of funds;
• Revision of the general visa regime for tourist visas, aimed at exempting citizens from countries with a low immigration risk, as well as for business visas, by granting investment visas with a longer validity period to citizens holding investments in Mozambique and by transforming the short-term tourist visa into a mixed tourism and business visa;
• Adjustment of the Labor and Investment Laws to make them more attractive to foreign investment.

The PMAE implementation, which is due to take place over a period of two years, is subject to approval by the relevant authorities, including the Parliament.