Published Paper Details:

This study was conducted to assess the strengths and weaknesses of the Simplified Tax for Small Taxpayers (ISPC). This study also tries to analyses to what extent after 13 years the political reasons that lead to the establishment of ISPC regime were accomplished or not since its entry into force. The study adopted Desk Review Study method conducted at Mozambique Revenue Authority. The paper has identified problems caused by taxpayers shift from others tax to the ISPC that tax erosion, fragility in monitoring the taxpayer's compliance, difficulties to calculate the trimestral volume of sales and related tax due. The study has used both primary and secondary sources of data. Using random sampling method 30 top and lower managers of the ISPC were selected from a total population of 120 officers, to share their expertise and experience with 96% return rate. The major findings are: The ISPC need to revised and improved in order to target the real segment of small taxpayers, lower the threshold limit, allow monthly payment of the tax, fixed amount of tax irrespective of the volume of sales, timely filling of the monthly volume of sales.