The amended finance law has been promulgated. It maintains the highly controversial motor vehicle tax, but the Ministry of Economy and Finance assures that it will not be applied.

Maintained, but not applied. These few words summarize the situation of the motor vehicle tax, according to explanations from the Ministry of Economy and Finance.

Declared constitutional by the High Constitutional Court last week, the amended finance law has just been promulgated. In the text published on the Ministry of Economy and Finance website, the highly controversial motor vehicle tax, now known by the acronym TVM, still appears. Its removal was nevertheless a commitment affirmed by Siteny Randrianasoloniaiko, president of the National Assembly.

"Reinstatement of the motor vehicle tax (sticker)" is listed under point 11 in the "Legislative Measures" section of the fiscal measures table in volume 1 of the budget text annexes and in the budgetary impact table of new measures in book 2 of volume 2 of the annexes. This mention confirms doubts that emerged following the plenary session devoted to voting on this law in the lower chamber on June 22.

No one mentioned the TVM tax during the plenary session. It also did not appear among the amendments listed in the annex of the commission's work report. The sticker was established by the initial 2026 finance law. It went unnoticed until June 9, when the General Tax Directorate issued a notice reminding taxpayers of their obligation to pay it. It subsequently sparked strong protests from taxpayers.

Faced with citizen backlash, the State reversed course. In a new notice dated June 11, the Ministry of Economy and Finance announced the suspension of the motor vehicle tax application. The document stated that "its removal will be proposed during commission debates and plenary session devoted to voting on the 2026 amended finance bill at the National Assembly."

The reinstatement of the TVM tax had indeed been maintained in the amended finance bill submitted to deputies before the early June controversy. To appease public opinion, the lower chamber president posted on his Facebook page: "Currently, we are examining the amended finance bill. Therefore, we will propose and support the cancellation of this TVM."

Revenue Loss

Ultimately, the motor vehicle tax remains inscribed in the budget text. When contacted for further explanation, the president of the National Assembly's Finance Commission did not respond. From the Ministry of Economy and Finance, the message is reassuring: "Certainly, the tax is still inscribed in the amended finance law, but it will not be applied."

According to a source within the Ministry of Economy and Finance, beyond its inclusion in the budget text, applying a tax requires its inscription in an implementation note and a budget circular. According to this source, the implementation note for the TVM tax was cancelled following the June controversy. It also does not appear in any budget circular.

A tax specialist notes, however, that maintaining this tax in the budget text allows its application to be activated at any time. He also raises the question of procedural consistency and indicates that the provisions of a law can only be repealed by another law. He also questions why it is being maintained if it is not to be applied.

On this point, the source at the Ministry of Economy and Finance explains that during commission work, debates on amendments to the amended finance bill were conducted by order of priority. Since it had already been decided that this tax would not be applied, the amendment aimed at removing it was considered one of the least urgent points to examine.

"Due to the tight schedule," according to these explanations, the decision to remove it could not be made. The commission's work report indicates that the question "What will we do about TVM application?" was raised. The answer recorded in the report is: "Given the context, it is better to suspend its application."

Amendments could still be proposed and debated in plenary session. However, the motor vehicle tax question was not brought back to the table.