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Burundi’s June tax revenues dip as political unrest hits economy

A protestor (R) jeers at policemen during Presidential election day in Bujumbura's Niyakabiga district, Burundi, July 21, 2015. PHOTO BY REUTERS/Mike Hutchings
A protestor (R) jeers at policemen during Presidential election day in Bujumbura's Niyakabiga district, Burundi, July 21, 2015. PHOTO BY REUTERS/Mike Hutchings
04/08/2015

KIGALI (Reuters) - Burundi’s tax revenues fell 36.4 percent below target in June, official data showed on Tuesday, coming against a backdrop of months violence stemming from President Pierre Nkurunziza's decision to seek a third term.

The country’s semi autonomous revenue authority (OBR) said it collected 42.2 billion francs ($27 million) in June from a target of 66.4 billion francs. Revenues were also 35.4 percent lower than those collected in June 2014.

Tax revenues from January to June fell to 285.8 billion francs from 297.4 billion francs the same period last year. 

The aid-dependent nation, where the economy relies on coffee and tea exports, faces one of its worst political crisis. Dozens have been killed in weeks of protests against Nkurunziza's third term bid. He said a court cleared him to run, and was re-elected in a disputed vote in July. 

Economic analysts fear a worsening situation in Burundi, where the income per capita is less than $300.

"Due to the impasse, Burundi is not able to mobilise domestic resources," said economic analyst Faustin Ndikumana, adding that many hotels and restaurants in the capital had been forced to send their workers home amid rising insecurity.

The situation could deteriorate if Burundi's major donors, including Belgium, the European Union, and the United States, were to cut direct aid to the country. 

OBR had predicted a tax revenue collection of 720.8 billion francs this year against 653.7 billion francs in 2014.

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