Burundi government revenue tumbles in wake of market blaze

BUJUMBURA (Reuters) - Burundi's tax revenue fell 20 percent in the first five months of 2013 due to an economic slowdown and a fire that destroyed a major marketplace in the capital, the finance minister said after parliament approved a revised budget on Thursday.

The revised 2013 budget projects tax revenues of 547.5 billion Burundi francs, well down from an initial forecast of 621 billion francs.

Burundi's government has already cuts its growth forecast for 2013 to 4.8 percent from 6.6 percent in the wake of the January blaze that razed Central Market, which also drew traders from neighboring Rwanda and Democratic Republic of Congo.

Finance Minister Tabu Abdallah Manirakiza said the fire had also led to a fall in tax collection.

"The government was not able to collect expected taxes on businesses," he told reporters.

To plug a growing deficit the central African nation has introduced a 10 percent value-added tax on various food imports as well as taxes of 5 to 20 percent on vehicle documents, flight tickets, telephone calls, liquor and imported clothes.

Under the revised budget, the government has also trimmed its spending plans to 1.369 trillion francs from 1.389 trillion francs.

Despite a decline in external budget support, Burundi's government expects grants of 711.9 billion francs by the end of the year, up from an earlier projection of 645.3 billion francs.

Burundi's $2.5 billion economy relies on coffee and tea for 85 percent of its exports, but the landlocked nation runs a large trade deficit, worsened by a weakening franc currency.

Source: http://news.yahoo.com/burundi-government-revenue-tumbles-wake-market-blaze-060640308.html

Baby I Ariana Grande Best Song Ever Deanna Burditt Joseline Hernandez red sox phil mickelson von miller