Burundi Eco – Green industry, useful but not favored in Burundi – 2024-09-09 10:23:43 – 2024-09-09 10:23:46 – 2024-09-09 10:25:05 – 2024-09-09 10:25:58 – 2024-09-09 10:27:55 – 2024-09-09 10:28:01

There are no incentives to promote green industry in Burundi. OBR services explain that the available incentive measures are those provided for by the investment code and are applied to all investors. However, industrialists express that the establishment of specific tax advantages for the green industry could encourage investors in the sector

“There are no specific tax advantages for the green industry in Burundi,” explains Stany Ngendakumana, spokesperson for the Burundian Revenue Office during his presentation of the theme: the tax civic-mindedness of Burundian companies: Tax incentives on the green industry in the 6th edition of the industrial fair organized by the Association of Industrialists of Burundi (AIB)

This OBR framework shows that the green industry benefits from the tax advantages determined by the Burundi investment code and that these concern all commercial companies in general. “The investment code is clear, it specifies the investors who receive tax advantages”

The role of OBR and ADB in promoting green industry is of paramount importance

The speakers wanted to know why the OBR, as the government’s tax policy advisor, does not intervene in the implementation of tax incentives in favour of green industry, given that it is of capital importance in creating jobs for women and young people, but also in protecting the environment. This is the case of Francis Muhirwa, the Director of Public Relations at Brarudi who wanted to know the role of the OBR and the ADB in the promotion of the green industry or “Green industry”: “Is there no way to put in place tax incentives for industries that do waste treatment or recycling “in order to encourage investors in the green industry?” asks Mr. Muhirwa. before showing that there is an environmental tax for every person who imports a vehicle over 10 years old to discourage those who pollute the environment. The idea behind this question is that companies that invest in the green industry or that implement strategies to reduce environmental pollution need encouragement from the government.

Responding to this question, Stany Ngendakumana explains that the main mission of the OBR is tax collection. However, he says that in case Industrialists are not dissatisfied with the state of play of the establishment of the green industry in Burundi, they can formulate recommendations at the end of this 6th edition of the industrial fair to plead that decision-makers can improve the laws and regulations governing the green economy. “We have explained what the investment code says, it is this code that currently governs investments,” he says. “The OBR does not grant advantages but executes the offers provided by public bodies that manage investors.”

What about the laws governing tax benefits?

According to Ngendakumana Ngendakumana, those who benefit from the tax advantages are companies of three categories namely all commercial companies regardless of their form of investment whose projects are deemed eligible for the advantages provided for by Article 17 of Law No. 1/19 of June 17, 2021 amending Law No. 1/24 of September 10, 2008 relating to the Burundi Investment Code. He indicates that these companies are managed by the Burundi Development Agency (ADB).

Another category of companies that benefit from tax advantages are commercial companies regardless of their legal forms whose projects are deemed eligible for the Free Zone regime and are governed by Law No. 1/015 of July 31, 2001 revising Decree-Law No. 1/30 of August 31, 1992 establishing a free zone regime in Burundi.

“Investors in the Free Zone are managed, not by the ADB, but by the ministry responsible for trade,” he said in his presentation. He added: “They benefit from Free Zone certificates and the advantages they obtain are provided for in Articles 17 to 20 of the law governing the Free Zone.”

The third group of investors who benefit from tax advantages are mainly those who have formed a cooperative. “Incentives are guaranteed for those operating in the agri-food, craft, education and health sectors,” explains Mr. Ngendakumana.

The management of these cooperatives is carried out by the National Agency for the Regulation of Cooperative Societies (ANACOOP) and the tax advantages are provided for by Article 91 of Law No. 1/12 of June 28, 2017 governing Cooperative Societies in Burundi.

According to the ADB, green industry is all industrial production and development that does not come at the expense of the health of natural ecosystems or human beings. It is designed to integrate environmental, climate and social considerations into business operations.