The Mozambican government is to suspend temporarily customs duties and value-added tax on all imported fuel products, state media reported on Saturday.
This is part of a bid to cushion consumers from the effects of high international oil prices.
The daily Noticias quoted Energy Minister Salvador Namburete as saying that the measure was taken after the government noted that companies were failing to keep reserve stocks because of the high prices they paid for fuel on the international market.
The waiver on the taxes and duties will come into effect from next month.
As a result of the waiver, the Mozambican government will lose at least $6-million (about R48-million) in unpaid taxes between July and December this year.
The measure will also help the rural population buy illuminating paraffin, which they mostly use for lighting.
”If the fuel crisis continues, the government will maintain the suspension of the payment of these taxes, and after the crisis we will see how we will reimplement the taxes,” Namburete told the paper.
At the moment, fuel importers pay value-added tax of 17%. — Sapa