The Analysis of Tax Rate Increases and Their Implications for Budgetary Policy

Jean Patrick NDUWIMANA1& Ildephonse SINDAYIGAYA*1,2
1Ecole doctorale de l’Université du Burundi, Bujumbura, Burundi;
2Enseignant en Master en Droit privé à l’Université de Ngozi, Burundi.
DOI – http://doi.org/10.37502/IJSMR.2025.8204

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Abstract

Burundi like any other sub-Saharan African country faces challenges as it targets to raise the level of their investment. One of the main ways to achieve this aim is to raise the tax rate. However, as the reality is that there is no proportionality of tax collection and distribution to the citizens, the latter adopts a bad behavior of tax-paying avoidance. This paper aims to analyze the direct impact of a tax rate increase or merely the impact of the introduction of a new tax to the national budget. As it is described through the court of account reports on the comments of the budgetary law, there is no matching sign between the tax rate increase and the collected income of the budgetary. The court of account cannot see the exact reason for increasing the tax rate or the introduction of the new tax in the value-added taxes (VAT).

Keywords: Tax income, budgetary resources, investment, taxpayer behavior, tax avoidance

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