BUJUMBURA, Burundi – The Burundi Parliament convened in plenary session on Tuesday, February 18, 2025, to review and approve a draft law amending Law n°1/02 of March 3, 2016, which governs the reform of municipal taxation in the country.
The session featured a presentation by Minister of Internal Affairs, Martin Niteretse, who outlined the rationale behind the proposed changes. Niteretse emphasized that the reform aims to empower municipalities to become self-sustaining, ensuring they can provide basic services to citizens while positioning themselves as hubs of economic development.
“This reform will allow municipalities to self-invest and better manage local resources,” Niteretse said during his address. “It aims to position municipalities as central pillars of economic growth and service delivery.”
Niteretse pointed out that the 2016 law had multiple shortcomings, particularly in the collection of taxes. He noted that the tax base was insufficient and that irregularities in tax collection, management, and control were prevalent.
“Certain taxes were either poorly collected or, in some cases, collected but never deposited into municipal accounts,” he explained.
The new bill seeks to resolve these issues by granting municipalities greater autonomy in determining, issuing, collecting, and enforcing taxes independently of the central government. This change, Niteretse said, would enhance local authorities’ ability to better manage their finances and meet tax obligations.
Under the proposed reforms, tax rates will be determined based on factors such as turnover, location, and the size of taxable areas. Minister Niteretse also assured that taxpayer protection would be prioritized, with the introduction of clear and simplified rules designed to ensure fairness for all taxpayers.
“The goal is to create a system that guarantees justice for taxpayers while enhancing local government efficiency,” Niteretse added.
In the context of this fiscal reorganization, the Minister also set a target for each commune, declaring that local governments should aim to generate at least 600 million Burundian francs in tax revenue.
“Agro-pastoral activities must be prioritized to increase production, as agriculture and livestock are significant sources of tax revenue,” Niteretse urged, calling on citizens to boost their engagement in these sectors.
After a thorough analysis and debate, the draft law was put to a vote. It was adopted unanimously by the 111 law makers present in the session.
According to the Burundi authorities, the new law is expected to significantly improve municipal financial autonomy and governance, laying the groundwork for sustainable development across the country’s local governments.
Burundi’s tax revenue reached 15.6% of GDP in 2021, a figure that’s closer to the average for sub-Saharan Africa, where tax revenues typically range from 15-20% of GDP.
