The 2027 Finance Bill proposes an increase in the tax on diesel. This measure is part of the commitments made by Madagascar to the IMF under the Resilience and Sustainability Facility (RSF).
The goal is to restore consistency in the taxation of petroleum products. The bill proposes aligning the tax on diesel with that of gasoline, raising it from 228 to 503 ariary per liter—an increase of 275 ariary. The government argues that the current tax gap acts as an implicit subsidy for diesel, which has higher CO2 emissions per liter than gasoline. Furthermore, this move aims to discourage fossil fuel consumption.
This policy aligns with the IMF’s recommendations for Madagascar, which emphasize the mobilization of domestic revenue and the strengthening of public financial management. The IMF recently authorized a disbursement of $155 million to the country, stressing the need for fiscal sustainability.
The 2027 Finance Bill also includes other revenue-generating measures, such as extending excise duties to perfumes and cosmetics, and applying a 30% customs duty on luxury goods and harmful products like alcohol, tobacco, and high-displacement vehicles. Additionally, customs duties on various finished goods with local production alternatives—such as biscuits, chocolates, and certain electronics—will be raised to 30%. These measures are expected to significantly boost state revenue, with the diesel tax hike alone projected to generate over 257 billion ariary.
Captured & Published at: 2026-11-04 06:08:46 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/11/carburant-une-hausse-de-la-taxe-sur-le.html
