Burundi to See Record High Tax Revenues

May 17, 2011 Taxation in Burundi

African manThe Burundi Revenue Authority (BRA) is improving the operational efficiency of tax collections in the
country, with a significant increase in tax revenues seen in the first quarter of 2011.

Over the first four months of 2011 the BRA collected a total BIF 123.3 billion in tax revenues, compared to BIF 95.10 billion throughout the same period in 2010. Commenting on the latest revenue report, Kieran Holmes, Commissioner General BRA, said that the latest figures were very positive sign for tax collections prospects for the rest of the year. He explained that historically the first quarter of the year has been the period with the lowest levels tax revenue collections, and the country now stands a chance to see record breaking revenues in 2011.

The increased tax revenue collections have been attributed to an improvement in the country’s economic conditions, and the government’s recent work to modernize and overhaul its tax infrastructures.

The OBR was established in 2009, as an integral structure of the government’s Strategic Financial and Business Environment Reforms, to centralize tax collections in Burundi and administrate the country’s tax system. Prior to 2009 tax collections in Burundi were administrated by several government agencies. The ineffectiveness of the previous system leads gross losses revenues, and difficulties in compiling and verifying information.

The government of Burundi is now implementing new government programs to harmonize the country’s tax systems and make carry out consolidated reforms with other African nations, both in an effort to eliminate potentials for tax arbitrage, and to modernize the internal tax revenue structures on the continent.

Photo by Nourah Al baz