Mozambique plans to increase the Fuel Tax to preserve roads

The Mozambican government plans to increase the Fuel Tax on diesel and gasoline to enhance funding for road maintenance. Transport Minister João Matlombe informed parliament that the tax would rise to 15 cents per liter, with periodic adjustments linked to inflation and currency fluctuations. Currently, the tax is below regional averages, and the increase aims to improve road conditions, as the percentage of roads in good condition has significantly declined. The proposal also includes allocating 90% of the tax revenue to the Road Fund, potentially raising annual funding for road maintenance. The minister highlighted the impact of extreme weather events on road infrastructure, emphasizing the need for a reserve fund for climate emergencies.