Burundi’s national assembly has passed a revised budget bill proposing new taxes on essential items despite resistance from a Tutsi-led faction in the government and Hutu opposition legislators, who say it will worsen living conditions.
Under the proposal, wines, liquors, cosmetics, tobacco and mobile phones would pay a $0.25 “new stamp tax”, and washed coffee, sugar, flour and mineral water would also have new taxes imposed.
There would also be a new fuel and airport departure tax.
The government argues the measures would help reduce the deficit expected in revenues this year. Burundi’s budget for this fiscal year had predicted tax revenues of 633 billion francs ($411 million), but the government expects a shortfall of 44 billion francs.
Finance Minister Tabu Abdallah Manirakiza has said the new taxes would raise funds for new roads and power supplies.
Burundi has suffered a power shortage because of a sharp fall in water reserves in the country’s main hydroelectric plant because of a drought.
The country is also trying to wean itself off international donors who provide 50 percent of the country’s budget resources.
Only parliament members of the ruling CNDD-FDD party approved the bill late on Wednesday.
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