Madagascar: minimum tax on salaries raised to 5,000 ariary
By the AFREEQUE newsroom, based on L'Express de Madagascar
The draft 2027 finance bill would raise the minimum tax payable on salary income from 3,000 to 5,000 ariary, without changing the rates of the tax brackets. The measure would bring an extra 4.8 billion ariary to the state, according to elements of the draft reported by several media, while workers’ representatives fear additional tax pressure.
The draft 2027 finance bill would raise the minimum amount of income tax on salaried and similar income (IRSA) from 3,000 to 5,000 ariary, an increase of 66.7%. This measure is expected to bring an extra 4.8 billion ariary to the state, according to L’Express de Madagascar.
The tax rates applicable to the different income brackets would remain unchanged: only the minimum amount of tax would be raised. Employees whose calculated tax is below the new threshold would be the first affected, particularly those earning less than 350,000 ariary. Malagasy minister Herinjatovo Ramiarison justifies the increase by the funding needs of public services.
The union Firaisamben’ny Sendika Malagasy Revolisionera (Fisemare) has expressed reservations. Its general secretary, Raphaël Ramananandro, believes employees’ purchasing power remains fragile in the face of rising prices for basic necessities. He also notes that some companies may not yet have applied the previous minimum wage increase, which could widen the gap between incomes and the cost of living.
