Member companies of the Group of Free Companies and Partners (GEFP) are facing VAT reimbursement arrears, which have accumulated since 2019, reaching a total amount of 57 billion ariary. This problem was at the center of discussions during a meeting between state and GEFP representatives last weekend. The Minister of Industrialization and Trade, Edgard Razafindravahy, and the Minister of Economy and Finance have directly initiated discussions to resolve this issue. They reviewed the technical details that led to this accumulation of arrears, seeking to find concrete solutions to settle this debt. Technicians from the two ministries were also mobilized to put forward practical solutions. Following these discussions, an agreement was established between representatives of the State and the GEFP for the clearance of VAT arrears.
Investment friendly
Free member companies of the GEFP play a crucial role in the Malagasy economy, providing jobs and contributing significantly to the country’s economic development. The payment of these arrears by the State will have a major impact on their activities and will promote a more conducive environment for investments. For the Ministry of Industrialization and Trade (MIC), improving the business environment and promoting investments are priorities. This initiative aimed at resolving the VAT arrears of free companies is part of this development policy. Resolving this issue is also likely to boost foreign direct investment in Madagascar, thereby boosting international investors’ confidence in the country’s business climate. In short, the discussions between the Malagasy State and the GEFP mark significant progress in resolving the VAT arrears of free companies. This initiative demonstrates the authorities’ commitment to creating a favorable environment for investments and promoting the country’s economic development.
Ansa R.