Economy

OBR overpasses its provisional target revenue

According to the fourth quarterly report from October to December 2014, the Burundi Revenue Authority has collected BIF 191.3 billion, which exceeds the forecasted 176.7 billion and the BIF 138.1 billion collected in 2013. Many reasons explain the success.-By Diane Uwimana

Domitien Ndihokubwayo: “ We can confirm that the results of the fourth quarter 2014 are satisfactory with a rate of realisation of 108. 3% which shows an increase of BIF 14.6 billion.” ©Iwacu

Domitien Ndihokubwayo: “ We can confirm that the results of the fourth quarter 2014 are satisfactory with a rate of realisation of 108. 3% which shows an increase of BIF 14.6 billion.” ©Iwacu

“We can confirm that the results of the fourth quarter 2014 are satisfactory with a rate of the realisation of 108. 3% which shows an increase of BIF 14.6 billion,” says Domitien Ndihokubwayo, the Commissioner General of OBR.

The amount of VAT collected during the period from October to December 2014 (the fourth quarter) is estimated at BIF 63.2 billion and higher than the expected forecast of 2.3 billion.
There are many reasons for this success. Martine Nibasumba, director of planning and survey in OBR explained some of them.

To begin with the lower fuel prices, the VAT rate of 18% and excise duties (of BIF 4 billion) were paid during the last quarter. “So, many taxpayers have paid the VAT which has increased the tax collection revenue. Then, if the price of fuel goes up, the State makes the subsidies,” says Nibasumba.

Moreover, the positive performance is also caused by the payment of the telecommunication licence which is paid twice yearly -April and October – which increased the non-tax revenues by another BIF 30 billion.
The commitment of the OBR administration to struggle against fraud and corruption has also increased the tax collection revenue all along the year.
Ms. Nibasumba notes that the target of applying zero tolerance to corruption and the fight against fraud, amounting to BIF 438.9 million has been recovered thanks to seizures carried out by the Unit for Rapid Intervention by reporting BIF 33.9 million while investigations have allowed to recover BIF 17.7 million. The discoveries of false statements and lower price of clearing by the Commissioner of Customs and Excise reported BIF 345.1 million.

Still, Burundi’s Revenue Authority is eager to increase the tax collection revenues in 2015.
The Commissioner General, Domitien Ndihokubwayo, indicates that there are some parameters put in place to increase the tax collection revenue and achieve the new target of 2015 of BIF 720.8 billion compared to BIF 655.6 billion in 2014 all along the year.
“We are determined and engaged to recover the outstanding BIF 44.6 billion, to convince 5 000 taxpayers among 14 000 taxpayers identified in 2014 to pay regularly their taxes and treat and close 72 cases of customs’ survey. These factors show us that we will achieve our target in 2015,” adds the commissioner.