Madagascar's amending finance law moves VAT in both directions

What changed in detail

Madagascar’s amending finance law for 2026, Loi n. 2026-004, promulgated 16 July 2026, makes seven VAT changes to the Code des Impots: luxury rice (HS 1006.30.10) moves from exempt to a new 5% reduced rate; kerosene (petrole lampant, HS 2710) is retaxed at 20%; electric hybrid vehicles are retaxed at 20% as item 29 is narrowed to pure electric vehicles and item 30 is abrogated; interest charged by banks and financial institutions on customer financing is added to the exemption list as item 4b; meat sales become new exemption item 31; fungicides (HS 3808.92) and herbicides (HS 3808.93) are added to the exempt annex; and mosquito-coil insecticides (HS 3808.91.11) are added to the exempt annex. Article 22 provides that the law enters into force on radio broadcast or posting, independently of Journal Officiel insertion.

What it means

Both directions of travel sit in one law, which is what a revenue-neutral rebalancing looks like: food and agricultural inputs relieved, fuel and hybrid vehicles taxed. The commencement mechanism is unusual and worth noting — article 22 provides that the law enters into force on radio broadcast or posting, independently of Journal Officiel insertion, so waiting for gazette publication to act would be waiting for the wrong signal.