Madagascar, Socialist

Taylor Abshagen

Madagascar

Socialist

Madagascar’s individual and corporate income tax rates are 20 percent. Other taxes include a value-added tax and a capital gains tax. The overall tax burden is 10.3 percent of domestic output. Government expenses are equivalent to 13.3 percent of domestic production. Public debt is equal to about 39 percent of gross domestic product. Previous reforms have reduced the number of days and procedures required to launch a new business, but completing licensing requirements still takes over four months on average. Madagascar’s average tariff rate is 9.1 percent. The government relies on tariffs for revenue but maintains few non-tariff barriers.

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