The announcement by Madagascar’s General Directorate of Taxes to introduce a 0.5% tax on mobile money transactions exceeding 150,000 Ar ( $31.80 USD) has sparked strong opposition from the country’s three major mobile money operators—MVola, Orange Money, and Airtel Money. Additionally, the move could jeopardize the livelihoods of the 164,000 distribution agents who depend on mobile money operations. Counterproductive for Public FinancesMobile money operators argue that the tax is unlikely to generate the projected fiscal revenues of 143 billion Ar. They propose fostering mobile money adoption, which could generate 50 billion Ar in additional tax revenues by 2025 through direct and indirect taxation. As champions of financial inclusion, MVola, Orange Money, and Airtel Money are urging the General Directorate of Taxes to reconsider the tax and engage in dialogue with stakeholders to develop a fair and sustainable tax framework.

Source: The North Africa Journal November 22, 2024 22:16 UTC