Burundi Records 30 Percent Rise in Revenue Collection

Scola Kamau

16 May 2011

Nairobi — Burundi revenue collection in the first quarter of 2011 is 30 per cent higher than in the same period last year.

According to the country’s revenue administration authority Odffice Burundais des Recettes (OBR), the $100 million revenue collection between January and March was up by $23 million from the corresponding quarter in 2010.

March recorded the highest revenue collection figure ever in Burundi raising $44.8 million.

“This is the highest quarterly figure realised,” OBR said.

Burundi expects more than 50 per cent of its 2011 budget from donors more than 50 per cent of its 2011 budget.

The International Monetary Fund projects that the country’s gross domestic product will grow by 4.5 per cent from 3.9 per cent in 2010due to more investments and a wider tax base on the backdrop of an efficient tax system.

Economic reforms

OBR was established in 2009 as part of Burundi government strategic financial and business environment reforms to help to mobilise domestic resources.

It focused on applying common external tariffs, replacing transactions taxes with value added tax (VAT), creating a one-stop shop for large enterprises to facilitate payments and the establishment of the Burundi Revenue Authority.

In the past, many public services and tax collection agencies were involved in tax collection, making it easier for tax evasion.

Revenue collected was channeled through many public accounting offices, while some sources were not even showing in the list of taxpayers, and remained unreported, while the value of goods was strongly underestimated.

The Ministry of Commerce and Industry estimated Burundi losses between July 2009 to June 2010 at 12.7 million euros.

The liberalisation of the regional trade saw a drop of incomes.

In February, Comesa and the East African Community contributed $11.3 million to Burundi’s economy in a bid to recover the economic loss the country has incurred on imported goods from the two organisations’ member states.

According to Comesa Secretary General Sindiso Ngwenya the money is intended to boost development projects and help it to catch up with other member states.

Burundi was ranked 181st out of 183 countries in the World Bank Doing Business Report 2010 behind its EAC counterparts.

Rwanda, Kenya, Uganda and Tanzania were ranked 58th, 98th, 122nd and 128th respectively.

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