Internet and telephone users in Madagascar will heave some sighs of relief on their bills come 2020. The small island country, off the coast of East Africa and with a population of 26 million( only about 3 million of whom are connected to the internet) has lowered its excise tax on telecommunications. The tax, which was reduced from 8% to 10% in the 2020 finance law, to the great displeasure of telecom operators and consumers, is again showing at 8% in the 2021 finance bill.

madagascar internet tax madagascar internet tax

Here Is What You Need To Know

• According to Ranesa Firiana Rakotonjanahary, the secretary general of the Ministry of Posts, Telecommunications and Digital Development (MPTDN), the drop is the result of a study conducted by the ministry. The study shows that by reducing the excise tax, its impact will be beneficial at all levels to consumers.
• However, in order to avoid the same blemishes as in 2019, when the tax was still 8%, the MPTDN provided for strict control of Airtel, Blueline, Orange Madagascar and Telma. With this surveillance of operators, the Malagasy government wants to ensure that there will be a real drop in prices, and not only for users of social networks as has been the case in the past.
• Ranesa Firiana Rakotonjanahary believes that the impact sought through this new tax cut should also largely benefit businesses that need Internet access for their activities.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer