Taxes Hinder Internet Access

Reducing internet connection fees in Madagascar remains a thorny issue. Telecom operators refuse to lower their prices until the government eases certain taxes deemed too burdensome. These levies represent approximately 215 billion ariary, the equivalent of the annual budget of a government ministry.

Among the taxes singled out are the excise duty, the tax on mobile transactions, and taxes on phones sold for less than $100, according to the Minister of Digital Development, Mahefa Andriamampiadana, during a television broadcast on November 24.

For the government, these taxes are essential. The Secretary General of the Ministry of Economy and Finance, Iouri Garisse Razafindrakoto, explains that these taxes represent more than 11% of the sector’s revenue, estimated at 1,938 billion ariary in 2024. Eliminating these taxes would therefore have a considerable impact on public finances. “Accepting such a demand would be impossible and would jeopardize the operation of essential services,” he stated.

Despite this standoff, the government is seeking to improve internet access, particularly for public institutions. The Minister of Higher Education and Scientific Research, Professor Ravonimanantsoa Ndaohialy Manda-Vy, announced that the deployment of a low-cost internet connection for universities is in its final stages. “This initiative will also benefit libraries and hospitals, contributing to strengthening access to information and public services,” he added.

As part of this program, research conducted by students at the Vontovorona Higher Polytechnic School will be used to help the government regulate and monitor networks. This work will provide technical support for improving the management of digital infrastructure.

Four ministries participated in the broadcast, including the Ministry of Digital Development, the Ministry of Posts and Telecommunications, the Ministry of Communication and Culture, and the Ministry of Economy and Finance. All emphasized the need for coordinated solutions to meet the needs of the population.