Burundi’s H1 tax revenue rise lags official forecast

BUJUMBURA (Reuters) - Burundi's tax revenues rose 10 percent in the first half of 2014 from a year ago but fell short of forecasts, the country’s tax authority said on Tuesday. The African country's revenue authority (OBR) said it collected 297.4 billion francs ($192.2 million) in taxes between January and June, up from 270.5 billion francs a year earlier, but the total was 2.5 percent less than the official forecast. Value-added tax collected from businesses however beat forecasts. "The value-added tax on imports and domestic business generated 60 billion francs, higher than the forecast of 53 billion francs," new OBR chief, Domitien Ndihokubwayo, told a news conference. Economic growth is boosting tax revenues. However, Burundi also cut corporate profits tax last year to 30 percent from 35 percent to harmonize with the East Africa taxation system. Burundi's economy is forecast to grow 4.7 percent this year, according to the International Monetary Fund, up from 4.5 percent growth in 2013 and supported by agriculture and construction of major infrastructure projects. OBR, which is a semi autonomous revenue authority, was set up in 2010 with financial assistance from donors such as Britain, to help the landlocked nation of 10 million people maximize its tax base and reduce chronic dependence on donor funding which makes up half of Burundi’s budget. OBR expects to increase its tax revenue this year by 13 percent to 633 billion francs, due to computerization of all tax services and a continuing crackdown on graft. ($=1546.95 francs)