An unblocking of the situation is expected. Private sector companies express the desire to find solutions for the reimbursement of Value Added Tax (VAT) credits. The Madagascar Business Group (GEM) informed President Andry Rajoelina of this during their meeting with the Head of State.
In a letter, this professional group explains that concrete solutions are expected in relation to this situation “by the end of April”. Currently, several companies are affected by this situation of VAT arrears which are still unpaid. Resolving the situation will be saving and “vital” for these private sector companies. Some are victims of the situation and the international economic situation, causing them to be overwhelmed by astronomical production costs.
“The payment of State arrears to private companies, mainly VAT credits, is vital because this situation where billions of ariary are blocked significantly compromises the situation of companies, particularly in terms of creation of jobs, investment and exports,” explains the GEM in its letter.
A situation brought to the attention of the President, who thereby assured the State’s support for the private sector during his meeting with his representatives. Previously, the right to reimbursement of VAT credits has long been the subject of numerous discussions between state officials and the private sector. The reimbursement of VAT credits is one of the most discussed procedures between the State and the private sector; the whole challenge is to juggle tax procedures and, at the same time, reimburse economic operators as quickly as possible, so as not to penalize their cash flow. These discussions are held in relation to this point in dialogues between the State and the private sector.
Itamara Randriamamonjy