Boosting Government Revenue

As part of the 2025 Finance Bill, Madagascar plans to introduce a tax on mobile transactions. This initiative aims to broaden the tax base and generate additional public revenue.

Financial transactions conducted via mobile money services will be subject to the Mobile Transaction Tax (MTT). According to the proposed framework, the tax will be set at 0.5 % on transferred or received amounts, including transactions originating from abroad. However, transactions below 150,000 ariary (approximately 32 USD) and those conducted between accounts owned by the same user will be exempt from this tax.

This measure is expected to significantly contribute to fiscal revenue, with the government projecting 31 million USD in revenue from the tax in 2025. This forms part of a broader goal to generate 1.1 billion USD in fiscal revenue during the same period. By leveraging mobile money, the administration seeks to enhance state resources.

Mobile money usage has been rapidly increasing in Madagascar. The country joins other African nations, such as Côte d’Ivoire, Kenya, Zambia, and Nigeria, which have implemented similar taxes to diversify their revenue streams.