0Nyusi explains how capital gains tax will be spentEspungabera – Mozambican President Filipe Nyusi on Saturday pledged transparency in the use of hundreds of millions of dollars to be paid in capital gains tax by the US corporation Occidental Petroleum. Vicki Hollub told reporters in Chimoio that the transaction will result in the payment to the Mozambican government of capital gains tax of around US$880 million. Nyusi said this sum will now be taken from the Occidental capital gains tax to make good the gap. The rest of the Occidental capital gains tax (14.46 billion meticais) will go towards the budgetary reserve – which could become the seed money for the sovereign wealth fund which the government intends to set up. Nyusi also explained how the previous payment of capital gains tax (US$352 million from the Italian energy company ENI) had been spent.

Source: The North Africa Journal October 07, 2019 08:37 UTC