Oil tankers owe 1,406 billion ariary in taxes and royalties to the State

The oil tankers’ debt to the Malagasy State amounts to 1,406 billion ariary in 2022, announced yesterday, the Minister of Economy and Finance, Rindra Hasimbelo Rabarinirinarison. Oil operators owe, among other things, 1,136 billion ariary in taxes and 270 billion ariary in royalties to the State, including 23 billion ariary in sector development fees and 247 billion ariary in road maintenance fees. .

On the other hand, the State’s arrears vis-à-vis oil companies to maintain prices at the pump have not yet been cleared. The total amount of this liability in May 2022 was estimated between 237 and 347 billion ariary. In September, Jirama also owed more than 800 billion in arrears to oil companies.

The oil companies have not yet paid their debts to the State, declared the Minister of the Economy yesterday when announcing the disbursement of 32.6 million from the IMF under the Extended Credit Facility (FEC). An agreement was reportedly reached between the State and the oil companies in December. It was presented to the IMF within the framework of the third review of the ECF which made it possible, among other things, to obtain this third disbursement.

The State will settle these oil tanker liabilities through special treasury bonds (BTS) included in the 2023 Finance Law, announced the minister. ” It remains to wait for the release of the decree authorizing the issuance of these BTS for oil tankers », said Rindra Hasimbelo Rabarinirinarison.

This agreement to settle cross-debts with oil distributors was congratulated by the IMF, which notably insisted on the need to fully implement the agreement concluded with its oil distributors.

Furthermore, the directors of the IMF encourage the pursuit of efforts to modernize the management of public finances and to improve the execution and transparency of the budget. They stress the importance of new measures to improve the legal framework for public procurement, in particular by requiring the identification of ultimate beneficial owners.