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D.1.1 Benchmark: Burundi Revenue Authority launched tax campaigns with local stakeholders to widen contribution of informal sector Burundi Context Informal economy doesn't have basic tax literacy & is unaware of the development benefits of taxes Unsure about why they should pay taxes • Not aware of how to go about registering & paying No moral social obligation to pay taxes Burundi wants to move to fair & equitable tax system which involves informal economy contributions What did Burundi do? Burundi Revenue Authority launched campaign targeting informal markets Launched tax literacy & awareness raising campaign Conducted by local administrators & market managers-made it more effective than if conducted by tax authority officials Launched call center for further support Encouraged informal traders to register for a taxpayer identification number¹ to assist bringing them into the tax net Campaign started in shopping malls, extended to markets & radios Locally trained students worked with tax authority officials to do a census of non-registered tax payers & register them Students & officials visited small traders in shopping centers to help register them Cost of the program was supported by USAID² & TradeMark East Africa 1. TINS, 2. United States Agency for International Development Source: Press Search; BCG Analysis Key successes -7,000 new taxpayers were registered during the campaign period Overall tax revenues increased since launch of program They have been issued TINS Boosted no. of tax declarations Increased taxpayer literacy Helped build awareness & knowledge of how to pay taxes Contributed to sense of moral obligation to pay taxes Built positive perception • Public feel they are being treated fairly & in a transparent manner given the outreach to them Learnings for Plateau State Involving officials who are closer to informal sector than tax authorities can be an effective strategy for raising awareness Establish support from the relevant local stakeholders from local administrators to funders Involve those stakeholders from outset Raise tax literacy & awareness re development role of taxes so people understand why they need to contribute Educate informal sector on how to declare & pay taxes E.g.: by having sessions at main markets where informal sector trades Be explicit about link between tax and development e.g: improved health facilities Copyright 2019 by Boston Consulting Group. All rights reserved.

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