adminBUJUMBURA. — Burundi’s cabinet will propose new duties on some alcoholic drinks and other products, an airport departure tax and other measures to make up for a shortfall in forecast revenues for 2014, according to a draft bill seen yesterday. This year’s budget had predicted revenues of 633 billion Burundi francs ($411.04 million), but the government now expects to fall short by 44 billion francs. Even so, the final figure is likely to exceed 2013 revenues of 559.5 billion francs.
This year’s shortfall has been blamed on the move to cut corporate taxes to 30 percent from 35 percent last year.
The draft bill, seen by Reuters and due to be presented to parliament, has drawn an angry response from activists in the impoverished east African nation.
One campaigner called for protests, saying the taxes would hurt the poor most.
According to the draft, a new tax will be introduced of 0.21-1.0 percent on alcoholic and other drinks made by brewery Brarudi, which brews beers and bottles soft drinks. It is 59 percent owned by Heineken and the rest by the state.
Wines, liquors, cosmetics, tobacco and mobile phones will pay a $0.25 “new stamp tax”, while the bill also introduces new taxes on fuel, lubricants, washed coffee, sugar, flour and mineral water.
Passengers departing from Bujumbura international airport will pay a 30,000 franc tax ($19).
Importers are set to pay a deposit worth 3 percent of the value of imported goods, a sum that will be deducted from their final income tax payment. — Reuters.
Online Reporter