Burundi: Selected Issues

International Monetary Fund

No 2026/151, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper highlights three central challenges to ramping up domestic revenue mobilization (DRM): (1) extensive and discretionary tax exemptions; (2) weak value-added tax (VAT) performance; and (3) a large informal economy undermining the tax base and enforcement. Technological improvements like digitization, while helpful, are insufficient to translate modernization into higher compliance and revenue. Complementary reforms are needed in compliance risk management, use of third-party data, taxpayer services and tax policy design. A sequenced medium-term revenue strategy centered on simplifying the system, broadening the VAT base, lowering the threshold where appropriate, rationalizing exemptions, and strengthening administration and legal frameworks will support progress. The paper suggests that sequencing tax reforms should begin with clear goal setting, simplification of tax policy, strengthening of tax administration, and capacity building. There is considerable scope of improvement in Burundi’s tax system integrating tax policy, tax law and revenue administration through structured and systematic reform.

Keywords: policy gaps in Burundi; administration reform; staff team; policy reform; General equilibrium; electrification strategy; Tax administration core functions; Electricity; Value-added tax; Productivity; Sub-Saharan Africa; Africa (search for similar items in EconPapers)
Pages: 39
Date: 2026-06-23
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=577181 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2026/151

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().