Increasing tax burden for national development
The Strategic Plan, sanctioned by the General Directorate of Taxes (DGI) of Madagascar for the 2024-2028 period, aims to elevate the tax burden rate to 18 % by 2028.
The Director-General of Taxes has affirmed his determination to realize this objective to foster the nation’s development. This declaration transpired during the conclusion of the « National Tax Symposium » on Thursday, April 18, 2024, at the International Conference Center in Ivato. According to the DGI, expanding the tax base is imperative to achieve the targeted 18 % tax burden rate by 2028. In 2019, the tax burden rate, expressed as a percentage of GDP, stood at 10.7 %.
Nonetheless, the pace of tax burden growth indicates that taxes contribute minimally to expanding the Malagasy GDP, remaining below the sub-Saharan Africa average of 16. %. As per the Ministry of Economy and Finance, « the current rate does not surpass 12 % ». In its General Policy for the 2024 budget year, the Government anticipates a gross tax burden of 12.9 %, with a tax revenue ratio of 7.0 % of GDP, compared to 6.8 % in 2023. These projections align with the country’s economic performance, as per the Director-General of Taxes.
The DGI’s Strategic Plan underscores three primary objectives : modernization, transitioning to paperless operations, efficient tax policy, and upholding good governance.
