The amended finance law has been promulgated, maintaining the highly controversial motor vehicle tax (TVM). However, the Ministry of Economy and Finance assures that it will not be enforced.
Although the High Constitutional Court (HCC) declared the law constitutional last week, the inclusion of the TVM in the text contradicts the commitment made by Siteny Randrianasoloniaiko, President of the National Assembly, who had promised its abolition.
The Ministry of Economy and Finance explains that while the tax remains in the budget text, it will not be applied because the necessary implementation notes and budget circulars have been canceled. A source within the ministry stated that due to a tight legislative schedule, the amendment to formally remove the tax was not prioritized, as the decision to suspend its application had already been reached.
Tax experts, however, warn that keeping the tax in the law allows for its activation at any time and note that legal provisions can only be repealed by another law. The non-application of this tax represents a shortfall of 2 billion ariary for the public treasury, a significant figure given the state’s fiscal commitments to the IMF.
Captured & Published at: 2026-07-22 05:57:24 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/07/loi-de-finances-rectificative-la-taxe.html
