Increase in price of tobacco

 

In the opinion on the proposal for a diploma on the sealing alcoholic beverages and manufactured tobacco it is sending to the government, Mozambique’s employer’s association the CTA expresses concern about the proposal to increase the price of fiscal stamps for local tobacco production from €7.54 to €10.69 (about 42%).According to CTA, this will increase costs in the tobacco industry by more than 28 million meticais and may reduce production, cutting tax revenue by about 9 million meticais. The tobacco industry currently contributes more than 1.9 billion meticais annually in tax revenue to the state. To improve efficiency in the tobacco sector, the CTA recommends a digital volume verification system (DVV) for tobacco products, which will better assist the country’s Tax Authority to deal with weaknesses in the control of tobacco products on the market. A DVV system will allow the authorities to check and control the volume of tobacco products manufactured domestically.bCTA hopes that the private sector’s preferences will be considered in the instrument under review, in the light of good relations with the government within the scope of the public-private dialogue.