Mozambique taxation of household energy products

Jun 30, 2016

In Mozambique, DFID and other donors are working to build the private sector market for solar home systems and improved cookstoves. High prices in relation to income levels is one of the main constraints on the adoption of these technologies by households. One way of reducing the prices would be to negotiate the removal of taxes and tariffs on these products, and ECA has been commissioned by DFID to evaluate this option and propose an advocacy and marketing strategy to communicate the results. This will include developing a model, which can be used in any country contemplating similar tax changes, to quantify the financial and economic impacts of different policy choices.