Mozambique has reintroduced a VAT exemption on soap, sugar, cooking oil, and their raw materials, as well as goods and services for sugar cane production.
Mozambique has published Law No. 3/2025 in the Official Gazette on 21 May 2025, amending the VAT Code to reintroduce a VAT exemption for soap, sugar, and cooking oil.
The initiative is part of the government’s effort to alleviate the cost of living.
“As we have always said, it is our primary duty to serve our people, improve their living conditions and, together, work to boost our economy,” said President Daniel Chapo on his official X account.
The exemption covers sugar, materials and components for the sugar industry, goods and services for sugar cane production, edible cooking oils and their raw materials, as well as soaps and their raw materials.
The VAT exemption will be effective from 30 May 2025 to 31 December 2025.
As noted earlier, the previous exemption ended on 31 December 2023. On 17 January 2024, the Mozambique Tax Authority released a public notice affirming the discontinuation of the VAT exemption previously applied to sugar, soaps, and cooking oils.
