(Ecofin Agency) - The government of Madagascar has reduced the excise duty on telecommunications. The tax, which rose from 8% to 10% in the 2020 finance law, dropped again to 8% in the 2021 finance bill.

According to Ranesa Firiana Rakotonjanahary, the Secretary-General of the Ministry of Posts, Telecommunications and Digital Development (MPTDN), the decision followed a study conducted by the Ministry which showed that a decline in the excise duty will benefit consumers at all levels.

However, the department has planned a strict control of Airtel, Blueline, Orange Madagascar, and Telma to improve the telecom environment. With this monitoring of 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.

Ranesa Firiana Rakotonjanahary believes that the impact sought through this new tax reduction should also largely benefit companies that need Internet access for their activities.