19/03/2019. Just hearing the word “taxation” makes me dizzy, because I don’t know much about it. Besides, it’s already tricky enough to talk about it with the suspicion of a possible tax audit. But at Stileex Post, we stick our noses in all sorts of places to share exclusive information with the general public. This is why we are going to tackle, this time, the topic of taxation in Madagascar.
Note: This survey was conducted with 899 individuals.
Taxation in Madagascar: the types of Malagasy taxes known to the Tananarivians
Without taking oneself for an expert on taxation in Madagascar, we can say that the knowledge of the Tananarivians on the types of taxes are in the right level, especially in the field of housing and land. Indeed, among the 7 types of taxes listed, the housing tax is the best known of the Tananarivians, winning 92% of the votes. It is then followed by property taxes, which won 82% of the votes. Next comes the mutation, which is known by 31% of Tananarivians. Behind it, there is the value added tax (VAT), which obtained 25% of the votes. Then, 23% of those polled are aware of income tax. During our survey, we noticed that 14% know what taxes on assimilated salary income (IRSA) are. And finally, 10% have an idea of what the registration fee is.
Special attention was also paid to the knowledge of the Tananarivians regarding value added tax. For example, 43% of Tananarivians stated that they knew what VAT was. When asked about its definition, it was found that :
- 34% gave a correct answer
- only 5% did not issue the correct definition
- and 4% did not respond
Are the people of Tananarivo eager to pay their taxes?
Awareness-raising on taxation in Madagascar seems to be bearing fruit, since the majority of Tananarivians (65%) pay their taxes. For the minority who said they do not pay taxes in Madagascar (34%), here are the reasons for their reluctance:
- 16% do not know how the tax payment takes place
- 9% did not respond
- 4% just don’t want to pay their taxes
- 3% can not afford to pay them (the cost of living in Madagascar has something to do with it)
What do you get out of paying taxes? Here are the answers of the Tananarivians
First of all, regarding the way taxation is managed in Madagascar, 65% of the Tananarivians surveyed noted that the State gives a fair return on the taxes paid. They are therefore 34% to disagree.
Then, when asked about the usefulness of taxes for the proper functioning of the country, 84% agree with this, while 14% believe that it does not help.
Finally, 58% think that the Malagasy government is transparent in the use of taxes, if 40% do not see it in the same way. The last 2% did not give an answer.
What to conclude from this survey on taxation in Madagascar
Contrary to the rumours that make people in Madagascar wary of taxation, it must be said that it doesn’t affect the people of Tananarivo so much, especially when it comes to paying taxes. We have seen that one out of three Tanzanians does not pay taxes, the main reason being ignorance of payment procedures. Moreover, Tananarivians seem to be aware of the impact of tax payments, since 84% of them are aware of the usefulness of taxes for the proper functioning of the country. It should be noted that taxation plays a crucial role in Madagascar’s socio-economic development. Indeed, public expenditure allocated to the construction of various infrastructures (roads, public buildings, etc.) draws its resources from taxes and levies collected, whether by the State or by communities.
According to the Directorate General of Taxes, a significant improvement in the tax collection rate in Madagascar has been recorded for the year 2018, it has risen to 93%. As for the tax collection rate of the Urban Commune of Antananarivo, it rose from 40% in 2016 to 60% in 2017.
As it is from the Finance Act of each year that the tax rate is determined, let’s count on our “solombavambahoaka” to save us from “tsy zakan’ny tsena” increases.