Supporting the Policy Enabling Environment for Development

Excise Taxes in Mozambique

Excises Tax in Mozambique - Comments on Government Proposal to Increase Taxes

The purpose of this note is to provide CTA a critical analysis of proposals contained in a discussion paper by Mozambique's Ministry of Finance, from 28 April 2008, to amend Specific Consumption tax (ICE). The ICE, passed into law in 1998, is an excise tax levied on a relatively narrow band of imported and domestically produced goods. Recently, the second proposal was accepted by the Council of Ministers and is scheduled to be passed by parliament shortly.


The authors provide a brief introduction to excise taxes. They then summarize the current system in place in Mozambique and outline the proposals contained in the discussion paper. Finally, they provide their thoughts and recommendations regarding the proposals.

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