Telecoms excise duty restored to 10% in Madagascar’s 2020 finance law

9 Mar 2020

The excise duty levied on telecommunications has been returned to 10% in Madagascar’s 2020 finance law, reports Agence Ecofin. The rate had been reduced to 8% in 2019 in a move welcomed by telecom operators, which have long criticised the tax burden faced by the sector. At a press briefing held last week to discuss the new tax provisions contained in the budget, the government claimed the cut resulted in a significant reduction in tax revenues but ‘had not had the expected effect on prices’. Telecom Malagasy (Telma) CEO Patrick Pisal Hamida had argued the rate should be cut to 5% in 2019, promising that ‘for every 1% cut in excise, Telma will reduce the price consumers pay for fibre-optic broadband by 10%’.

Madagascar, Telecom Malagasy (Telma)