The government of Madagascar has reduced the excise duty to 8 percent on telecommunications, Ecofin reported. The tax had risen from 8 percent to 10 percent in the 2020 finance law. According to Ranesa Firiana Rakotonjanahary, the Secretary-General of the Ministry of Posts, Telecommunications and Digital Development, the decision followed a study conducted by the ministry which shows that a decline in the excise duty will benefit consumers at every level.
However, the department has planned strict control of Airtel, Blueline, Orange Madagascar and Telma to improve the telecom environment. By monitoring operators, the Malagasy government wants to ensure that there will be a real drop in prices for all consumers, and not only for users of social networks as was the case in the past. Rakotonjanahary believes that the tax reduction will largely benefit companies that need internet access for their activities.
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