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Economy

Burundi Steps Up Efforts to Collect Overdue Taxes in Response to Economic Strain

Finance Minister launches forced recovery of unpaid taxes, warning taxpayers of severe measures ahead of year-end deadline.

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Finance Minister Nestor Ntahontuye warned the operation would extend nationwide / OBR
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In a decisive move to address the country’s ongoing economic crisis, the Burundi Revenue Authority (OBR) launched a forced recovery campaign for unpaid taxes on Friday in Bujumbura, Burundi’s economic capital. Finance Minister Nestor Ntahontuye led the operation, which involved the closure of irregular businesses, including Spidernet, an internet service provider based in the city.

Ntahontuye warned that the operation would extend nationwide, aiming to recover billions of unpaid taxes: “This operation is a forced recovery for taxpayers who have failed to settle their taxes on time,” said Ntahontuye. The minister emphasized that the OBR had previously issued multiple warnings to delinquent taxpayers via radio, television, and official letters. “We’ve followed the necessary legal procedures, and businesses failing to comply are being targeted,” he added.

According to local media reports, Burundi’s unpaid taxes are currently estimated to total a staggering 300 billion Burundian francs. The crackdown comes as part of the government’s broader efforts to restore the country’s fragile economy. Over the past week, Minister Ntahontuye ordered OBR to intensify its tax collection efforts, particularly for the Value Added Tax (VAT), which had been collected at a rate of just 20%.

He also took the opportunity to remind other taxpayers of the serious consequences of continued non-compliance. “We call on all businesses and individuals who have not yet settled their taxes to come forward to the OBR before we are forced to implement more drastic measures such as closures or freezing accounts,” he warned.

The government’s intensified tax recovery efforts come on the heels of a financial scandal that rocked the country earlier this month. Over 110 billion Burundian francs disappeared from the country’s revenue authority over a four-month period, prompting widespread criticism of government inaction on corruption and mismanagement. In response, President Évariste Ndayishimiye ordered OBR to recover all overdue taxes within two weeks, setting a deadline of December 31 for compliance.

The call for urgent action reflects the government’s commitment to stabilizing the country’s finances amid the ongoing economic crisis. This is further supported by recent leadership changes, including the replacement of Finance Minister Audace Niyonzima and OBR head Jean Claude Manirakiza.

The reshuffling was widely perceived as a move to restore public trust in the country’s financial systems following a major scandal. With the deadline for tax recovery fast approaching, the Burundi Revenue Authority faces mounting pressure to recover billions of francs and stabilize the country’s finances amidst a deepening economic downturn and growing public discontent.

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