BUJUMBURA, March 12th (ABP) – The Burundi Revenue Authority (OBR), during a meeting held on February 28, 2025, briefed journalists on some revenue innovations included in the revised 2024-2025 budget law.
OBR Taxpayer Education Officer Willy Citeretse said that regarding the consumption tax on hotel, motel, and guesthouse rates, Article 56 stipulates that a 5% service consumption tax is levied on accommodation rates excluding all taxes, applied by hotels for the development of the tourism sector. This tax is collected by the managers of hotels, motels, and guest houses and then declared and reserved monthly no later than the day of the month following the collection period.
In the event of failure by the legal debtor, the applicable penalties are those provided for by the law relating to tax and non-tax procedures. According to the said law, any owner or manager of a hotel, motel or guest house is required to display, at the entrance visible to the public, the indication of the use of the building, otherwise, a fine of five hundred thousand Burundi francs (500,000 BIF) is applied. Regarding the flat-rate levy on imports intended for resale, Article 57 specifies that a flat-rate levy is made as an advance payment of income tax on all imports intended for resale brought into Burundian territory. The rate of the flat-rate levy is set at 3% of the customs value of imports, except for fuel. For vehicle imports, the flat-rate levy is applied starting from the second business and leisure vehicle imported per individual per year, except for duty-free vehicles. However, if a vehicle is transferred before the expiration of a two-year period from the date of importation, the flat-rate levy becomes payable.
Regarding the repatriation of rental income tax to the state tax system, Article 65 stipulates that Decree-Law No. 1/027 of July 21, 1989 amending Law No. 1/003 of January 8, 1987 on the transfer of rental income tax collected in Burundi to the communes and the Bujumbura City Council remains repealed. Rental income tax is repatriated to the state tax system managed by the OBR. In this capacity, the OBR collects rental tax. Revenue from rental tax is distributed so that 60% goes to the communes and 40% goes to the public treasury.
Citeretse urged taxpayers to be tax compliant by avoiding fraud and tax evasion to prevent penalties.