Strengthening the Creative Industries for Development in ... - unctad

26 PART 3. CREATIVE INDUSTRIES POLICY REVIEW
to specific conditions the local sectors can benefit. South Africa also has a substantial tax rebate
scheme that could be used as a reference for Mozambique to develop its own.
Action: Another variation to this sponsorship law might be that part of the tax exemption could go
into a public fund and not just “back” to the investor. 68
Information available from local musicians indicates that, at present, there is 40 per cent tax on DVD
imports, comprised of 25 per cent import duty plus value added tax (VAT). Musical instruments are
normally taxed at 80 per cent plus VAT because they are considered a luxury item. Technical
equipment is taxed at 40 per cent plus VAT. 69
It is possible, under special circumstances, to obtain a reduction of import duties/taxes on musical
instruments. 70 However, the process is apparently lengthy and not sufficiently transparent.
Action: Reducing import taxes on the import of materials and services used in the creative sectors
should be envisaged.
Action: The government is encouraged to enact legislation to provide fiscal incentives to artists,
cultural producers and the corporate sector involved in the creative sector.
Action: The government is encouraged to provide tax exemptions and reductions on duties and levies
on the import of equipment used in creative enterprise.
Action: The government is encouraged to provide tax exemptions of the import of books, for at least a
specified period of time.
Action: The government is encouraged to revise the tax rebates for the corporate sponsorship of the
arts and culture with a view of greater and sustainable benefits to the local creative sectors.
3.5. INVESTMENT
Mozambique has been attracting higher inflows of FDI but mainly for its mining mega projects. The
Investment Code continues to provide protection for investors, and the Investment Promotion Centre
remains responsible for dealing with all investment procedures and for promoting Mozambique as a
destination. A consolidated Code of Fiscal Benefits is operational, and both national and foreign direct
investors can access to it if registered. At present, Mozambique has minimum investment thresholds of
$5,000 for national investment and $50,000 for foreign investment. 71 The Foreign direct investment;
net inflows (% of GDP) in Mozambique was reported at 5.96 in 2008, according to the World Bank.
Efforts have been made to improve the investment climate but investors both foreign and domestic still
face bureaucratic and infrastructural constraints. It should be pointed out however that a new
Commercial Code governing the establishment of companies has improved legal procedures. For
instance, the registration process for new companies has been modernized and a simplified licence
procedure is now in place.
A comprehensive model of investment is necessary for the sustainability of the creative industries.
There is a simultaneous call by professionals for both government and investors in the creative
industries to establish some funding mechanisms, as well as for the provision and encouragement of
private sector investment and opportunities. Funding mechanisms that combine public and private
sources, for example through industry transfers, are discussed below.
68 Suggestion made by local film professionals.
69 Pauta Aduaneira (customs and duty tax scheme established by the government).
70 President of the AMMO, Maputo, 3 September 2008.
71 Centro de Promoção de Investimentos – CPI, online information.