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Mozambique to review health taxes in view of rising NCD prevalence - P4H Network

Mozambique to review health taxes in view of rising NCD prevalence

The Mozambican Ministry of Finance is preparing a reform of the Specific Consumption Tax (ICE),which includes taxes on tobacco, alcohol, sugar-sweetened beverages, cars, and other consumption goods. 

The country operates in the SADC tax harmonization framework, which limits the possible increases. However, there is room to increase taxes related to unhealthy consumption, given the rise in Non-Communicable Diseases (NCD) in the country, especially diabetes and cardio-vascular disease. According to the Global Burden of Disease analysis, the risk that has increased the most in Mozambique is Body Mass Index (overweight and obesity).

The Ministry of Health has developed a NCD Prevention Strategy which includes economic measures such as health taxes. The proposal which is being discussed includes increases in the taxation of tobacco, alcohol, SSBs, and the inclusion of some ultra-processed foods (UPFs).

Health taxes currently represent 1.3% of tax revenue in the country, as per Budget Execution Report of the Ministry of Finance.

Reference
08 Dec 2021