Strengthening the fight against tax and customs fraud is imperative, according to Minister Dr Ramiarison Herinjatovo Aimé. With a tax pressure below 11% of GDP, Madagascar remains far from levels observed in comparable countries. According to the Minister of Economy and Finance, tax fraud causes the State to lose over $800 million annually. Madagascar loses each year the equivalent of approximately 5% of its gross domestic product, or more than $800 million, due to tax fraud. This estimate was advanced by the Minister of Economy and Finance during discussions on the preparation of the Initial Finance Bill (PLFI) 2027. This situation contributes to keeping tax revenues at a particularly low level. Tax pressure remains below 11% of GDP, while it stands between 15% and 18% in several countries with comparable economic characteristics. In other words, a significant portion of revenues that should feed State coffers still escapes the tax system.

Large enterprises
Another indicator measures the scale of the gap. According to data provided, large enterprises' tax obligations represent on average globally approximately 20% of their turnover. In Madagascar, this ratio would be only 12% on average. The situation remains highly contrasted. Some large enterprises among the biggest contributors dedicate up to 30% of their turnover to their tax obligations. A gap that raises notably the question of broadening the tax base, equity among taxpayers, and strengthening the fight against fraudulent practices.

Considerable needs
The revenue shortfall appears all the more concerning as financing needs are immense. In the Analamanga region, infrastructure improvements, particularly roads, figure among the priorities expressed for the 2027 budget. The deterioration of the road network itself has considerable economic cost. Losses linked to poor road conditions are estimated at approximately $320 million annually, notably due to transport surcharges and their impact on agriculture, commerce, tourism, and other economic activities. In this context, fighting tax fraud could constitute an important lever to generate greater budgetary margins, without systematically placing additional burden on taxpayers already meeting their obligations.

Double requirement
But increasing revenues is not enough. The question of their use remains inseparable from that of their mobilization. For taxpayers, the equation is therefore twofold: reduce losses linked to fraud and ensure that resources actually collected are used transparently and efficiently. As the PLFI 2027 approaches, the budget debate concerns both the State's capacity to increase its revenues and its ability to transform these resources into infrastructure and public services truly meeting the population's needs.