## Republic of Madagascar: Selected Issues

_IMF Staff Country Reports, March 2, 2020_

## Source details

**Canonical URL:** [Republic of Madagascar: Selected Issues](https://www.imf.org/en/publications/cr/issues/2020/02/28/republic-of-madagascar-selected-issues-49189)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/02/28/republic-of-madagascar-selected-issues-49189/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/02/28/republic-of-madagascar-selected-issues-49189/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/02/28/republic-of-madagascar-selected-issues-49189/bundle-manifest.json)

## Bibliographic details
- Published: March 2, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513534213.002

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### 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

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## Content in this bundle

- **Republic of Madagascar: Selected Issues; IMF Country Report No. 20/61; January 9, 2020**
  - [Republic of Madagascar: Selected Issues; IMF Country Report No. 20/61; January 9, 2020 (Markdown version)](/-/media/files/publications/cr/2020/english/1mdgea2020002.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of Madagascar: Selected Issues; IMF Country Report No. 20/61; January 9, 2020 (PDF)](/-/media/files/publications/cr/2020/english/1mdgea2020002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/02/28/republic-of-madagascar-selected-issues-49189_