Madagascar raises tax on telecoms services to 10%

Mergers, Acquisitions and Financial Results

The Madagascan government is increasing excise tax on all telecommunications services to 10% under the 2016 Finance Act, reports L’Express de Madagascar, noting the revision is up from 7% for mobile calls, while national and international communications including fixed telephony, internet, SMS and data transfer were previously exempt.

The state expects to gain tax revenues of MGA3.429 trillion (USD1.054 billion) in the next year – MGA1.689 trillion from customs revenue and MGA740.4 billion in domestic revenue. End-users will be hit by the revised tax implementation, with Orange Madagascar announcing in a statement that as of 14 January it will apply a hike on its service charges of between 3% and 10%.