Republic of Madagascar: Selected Issues
IMF Staff Country Reports, March 2, 2020
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- Republic of Madagascar: Selected Issues
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Bibliographic details
- Published: March 2, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513534213.002
Summary of analysis and findings
- The paper analyses tax revenue mobilization potential in Madagascar and lessons learned from successful episodes in sub-Saharan African (SSA) countries.
- The analysis shows that there is a significant tax potential including through a possible broadening of the tax base, notably for consumption taxation.
- The paper underscores the importance of a comprehensive revenue strategy, including by combining reforms in tax policy and in tax and customs administrations.
- Significant progress has been made in terms of organization, simplification of procedures, management, and dialogue with the taxpayers.
- Communication between the two tax administrations could be improved.
- Many importers are active and make customs declarations without being identified by the domestic tax administration.
Policy recommendations and administrative measures
- Combine reforms in tax policy and in tax and customs administrations as part of a comprehensive revenue strategy.
- Improve communication and coordination between the two tax administrations:
- The tax administrations should notify each other if a case of fraud.
- The domestic tax administration should have access to customs import/export data to identify active importers who currently declare to customs but are not identified domestically.
- Strengthen organization, simplify procedures, improve management, and continue dialogue with taxpayers.
- Given weaknesses in the provision of public services, promote social dialogue and consultation to explain the rationality of the tax system and the use of tax revenue by the State.
Subject coverage and keywords
- Subject: Banking, Central bank policy rate, Credit, Expenditure, Financial services, Money, Public investment and public-private partnerships (PPP), Public investment spending, Revenue administration
- Keywords: audit performance, Central bank policy rate, country, CR, Credit, investment, investment-growth linkage, ISCR, PPP investment portfolio, public investment, Public investment and public-private partnerships (PPP), Public investment spending, Sub-Saharan Africa, tax frontier, theorical tax potential
Content in this bundle
- Republic of Madagascar: Selected Issues; IMF Country Report No. 20/61; January 9, 2020