Mozambique: Mpesa tax on profits impact on women

The article examines the impact of a new 10 percent personal income tax on commissions earned by mobile money agents in Mozambique, focusing on how the measure affects women who depend on this work for household income. Through the experience of Zulmira Muchanga, a mobile money agent and mother of three, the story shows how reduced commissions and new tax deductions are undermining financial stability. 

Agents report that commissions from mobile wallet transactions have steadily declined in recent years, while the newly introduced IRPS retention further reduces take-home earnings. Many agents say they were not consulted before the policy was implemented and that the flat tax rate does not reflect income differences among agents. 

The Autoridade Tributária defends the measure as a formalization of existing tax obligations and says the effective tax rate has been reduced from 20 to 10 percent. However, agents argue that the combined effect of lower commissions and taxation makes the activity unsustainable, with potential consequences for women’s economic autonomy and household welfare. 

LINK TO PUBLISHED STORY

Written by Cleto Almeida. This article, first published by Savana, is part of the Media Parity Capacity Building Programme and republished as part of the programme series.